In this paper, Capacitive Telemetry RF Sensor System using Recursive Least Square (RLS) algorithm was proposed. General Telemetry RF Sensor System means that it should be "wireless", "implantable" and "batterless". Conventional Telemetry RF Sensor System adopts Integrated Circuit type, but there are many defects like complexity of structure and the limitation of large power consumption in some cases. In order to overcome these disadvantages, Telemetry RF Sensor System based on inductive coupling principle was proposed in this paper. Proposed Telemetry RF Sensor System is very simple because it consists of R, L and C and measures the changes of environment like pressure and humidity in the type of capacitive value. This system adopted RLS algorithm for estimation of this capacitive parameter. For the purpose of applying RLS algorithm, proposed system was mathematically modelled with phasor method and was quasi-linearized. As two parameters such as phase and amplitude of output voltage for estimation were needed, Phase Difference Detector and Amplitude Detector were proposed respectively which were implemented using TMS320C2812 made by Texas Instrument. Finally, It is verified that the capacitance of proposed telemetry RF Sensor System using RLS algorithm can be estimated efficiently under noisy environment.