The traidational 3D interactive sysetm which uses CCD camera to capture image is difficult to operate on near range for mobile applications.Therefore, 3D interactive display with embedded optical sensor was proposed. Based on optical sensor based system, we proposed four different methods to support differenct functions. T mark algorithm can obtain 5- axis information (x, y, z,θ, and φ)of LED no matter where LED was vertical or inclined to panel and whatever it rotated. Sequential mark algorithm and color filter based algorithm can support mulit-user. Finally, bare finger touch system with sequential illuminator can achieve to interact with auto-stereoscopic images by bare finger. Furthermore, the proposed methods were verified on a 4-inch panel with embedded optical sensors.