The technology of Radio Frequency ldentification is becoming widely used in industry engineering. However, the UHF RFID tag can be easily affected by environmental noise factors, especially on the metal surface. The metal effect to Radio Frequency ldentification (RFlD) location system is described in the thesis. Different methods are adopted to analyze the circumstances when RFID location system is placing near the metal objects. Simulation for tag antenna is accomplished to detect how the metal plate a fleeting the magnetic field around the tag. Moreover, the experiments are completed by using RF Code M250 reader and R150 tags. This study shows that ferrite is one of the materials that can reduce the effect of metal noise factor. The proposed results illustrate the noise factor of metal material influence RFlD system and provide the useful alert when RFlD technology is applied in the metal environment of industry engineering, KEYWORDS-antenna, electromagnetic simulation, ferrite, metal effect, RFID