The Active Radio Frequency Identification tag that is RFID tag with battery is promising for RFID low power consumption and precise localization in indoor cluttered as well as for outdoor environment. In this paper, Design and Implementation of an Active RFID tag is proposed, with far reading distance, high reliability, low cost, low power consumption, and long life. The Active RFID tag is a transmitter designed using the 8051 microcontroller and wireless data transmission chip CC2500. The objective of tag is achieved by optimization of the circuit design for continuous Tag ID transmission; each Tag has its own unique ID. The transmitted Tag ID is captured by receiver we call it as RFID reader, the hardware and software implementation are presented in this paper with measurement in a typical indoor environment.