In this paper, an overview of anti-collision algorithm for RFID system of a standard EPC Class1 protocol is presented, and the binslotted dynamic search algorithm (BDS) based upon the slotted ALOHA and binary tree procedure is proposed and analyzed. Also, the performance is evaluated as comparing the BDS algorithm with the standard bin-slotted algorithm (BSA) through the simulation program. The performance of the proposed BDS algorithm is improved by dynamically identifying the collided-bit position and the collided bins stored in the stack of the reader. As the results, the number of request command that a reader send to tags in the reader s interrogation zone and the total recognition time are decreased to 59% as compared with BSA algorithm. Therefore, the tag identification performance is fairly improved by resolving a collision problem using the proposed BDS algorithm.