Kinect Camera based gesture recognition is currently playing vital role in image processing field for e.g. gesture based Xbox games. FPGAs now a day are the most versatile Programmable Logic Device. FPGAs can be used for numerous applications. This paper presents information about performing image processing algorithm using Microsoft Kinect Camera using Field Programmable Gate Arrays (FPGA). The Image Processing on FPGA is quite a complicated task because it requires different architecture in order to process the image. To facilitate processing of image on FPGA, MATLAB and Simulink along with Xilinx System Generator (XSG) tools is the easiest and most efficient way. Such tools convert the image into suitable formats that are supported by FPGA. ©2006-2016 Asian Research Publishing Network (ARPN).