This study investigates the neural dynamics of hand gesture recognition and execution in the context of social interaction. Our scalable experimental design (SED) considered from controlled laboratory environments to real-world settings, using the rock-paper-scissors (RPS) game. Electroencephalography (EEG) µ rhythm suppression in 23 participants (16 females, aged 18-50 years) was quantified on C3, Cz, and C4 sensors across four experiments: Gesture Identification (experiment 1: Baseline), Simulated Interaction A (experiment 2: versus Artificial Intelligence), Simulated Interaction B (experiment 3: versus Human), and Real-World Interaction (experiment 4: hyperscanning). In experiments 1-3 participants performed the tasks under traditional EEG settings. In experiment 4, pairs of participants played RPS while hyperscanning mobile brain/body imaging (MoBI) systems monitored EEG+ECG.We hypothesized distinct patterns of µ rhythm, corresponding to the gestures rock, paper, and scissors, in both observation and execution phases, increasing with social interaction. Results indicated that as actions transitioned from a simulated to a real-world context, µ rhythm desynchronization intensified. Greater desynchronization was interpreted as a marker of enhanced inhibition of irrelevant motor activity and/or sensory processing, actively processing of social cues, and facilitation of higher social skills neural resources allocation.Given the cross-cultural nature of the RPS game, and its common use in therapeutic settings to evaluate social cognition, our findings enhance the understanding of the neural underpinnings of social cognition and empathy. This research has potential implications for advancing social neuroscience, motor learning, and rehabilitation therapies, offering insights into the mechanisms that underlie effective social interaction and motor coordination.