You do not explicitly state that this is an Apple-branded, or third-party mouse, or whether it is wired, or wireless.
If the mouse ever tracked properly, what event occurred that afterward, it did not track properly? If it is a battery operated mouse, have you installed fresh batteries, and experienced tracking issues anyway? If it is a Bluetooth mouse, have you removed the mouse entry from the Bluetooth preference panel, cycled power on the mouse, and attempted to pair it again with the Mac?
If it is a third-party wired, or wireless mouse, did you install any vendor software with it?
Have you adjusted the Mouse Preferences tracking speed?