This paper presents an interactive exoskeleton device for hand rehabilitation, iHandRehab, which aims to satisfy the essential requirements for both active and passive rehabilitation motions. iHandRehab is comprised of exoskeletons for the thumb and index finger. These exoskeletons are driven by distant actuation modules through a cable/sheath transmission mechanism. The exoskeleton for each finger has 4 degrees of freedom (DOF), providing independent control for all finger joints. The joint motion is accomplished by a parallelogram mechanism so that the joints of the device and their corresponding finger joints have the same angular displacement when they rotate. Thanks to this design, the joint angles can be measured by sensors real time and high level motion control is therefore made very simple without the need of complicated kinematics. The paper also discusses important issues when the device is used by different patients, including its adjustable joint range of motion (ROM) and adjustable range of phalanx length (ROPL). Experimentally collected data show that the achieved ROM is close to that of a healthy hand and the ROPL covers the size of a typical hand, satisfying the size need of regular hand rehabilitation. In order to evaluate the performance when it works as a haptic device in active mode, the equivalent moment of inertia (MOI) of the device is calculated. The results prove that the device has low inertia which is critical in order to obtain good backdrivability. Experimental analysis shows that the influence of friction accounts for a large portion of the driving torque and warrants future investigation.