A multi-function pointing device is disclosed. The multi-function pointing device is operative to initiate an action in an electronic device in response to a movement of a pointing implement that is movably positioned in a holster. At least one sensor detects the movement (e.g. translation and rotation) of the pointing implement in the holster and outputs a signal indicative of that motion. The action initiated by the electronic device can include manipulating images on a display or a touch sensitive display, scrolling of the display, cursor movement, zooming in and zooming out on an image, and moving between various icons or objects on the display. The pointing implement can be a stylus for manipulating images displayed on a device such as a PDA, cell phone, digital camera, portable computing device, or the like. The multi-function pointing device can be a peripheral component that is connected with the electronic device.