Human Computer Interaction (HCI) has become very important in today's world. Existing HCI techniques like keyboard, mouse, joysticks etc. limit the speed and naturalness of our interaction. Hand gestures provide a more natural way of communicating with the computer. Hand segmentation is the most crucial step in every hand gesture recognition system. All subsequent steps greatly depend on the quality of segmentation. If data is lost due to improper segmentation, it can hardly be recovered in the later stages of gesture recognition process. In this paper, we present a robust and effective method of hand segmentation which overcomes problems such as skin color detection, complex background removal, complexity from multiple gesturers in front of the camera and variable lighting condition.