In this paper, hand gesture recognition is presented by exploiting 3D localization using a depolarizing chipless RF identification (RFID) tag held in hand in front of a monostatic radar. The chipless RFID tag is localized by utilizing the backscattered phase and multilateration. Based on the location of the tag in 3D, it is possible to detect different gestures made with the hand. Six simple gestures are presented to illustrate the principle. These hand gestures are recognized by doing the free space measurements in office environment: a) x line; b) y line; c) z line; d) xy circle; e) xz circle; and f) xyz helix. The system is capable to recognize hand gestures with good accuracy and hand speed.