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I am new here so thanks for taking the time to read this.

Is it possible to use my controller (xbox360) on the device I am streaming to(laptop)?

I configured the controller and works fine when plugged into my host pc. However I am unable to use it on my laptop due to the controller being read as detached in the pcsx2 controller plugins menu.

Is there a work around for this or any solution?

I5-2500
8gb ram
win 7
HD 7770
wired xbox 360 controller

It may or may not work. For one, make sure it's drivers are installed on both client and server PC. For two, you might need to plug it into the server PC, start the game, then move it to the client PC.

I had luck getting my DS3 to work with in home streaming using SCP wrapper, once I had the drivers installed on both PCs.