In The Proposed System We Are Going To Use Latest Technology RFID (Radio Frequency Identification). The RFID Technology Is Used Everywhere In Which The Main Factor Is Uniqueness. The Unique Property Is Provided By Creating Unique Number For Every RFID Tag. In This Tag We Can Store Certain Amount Of Data Which Are Used In Identification. The Data In The Tags Are Read Via RFID Reader. In Our Proposed System We Are Going To Implement Passive RFID For Luggage Identification. In Every Luggage We Are Going To Give A RFID Tag With The Passengers Detail In It. The Main Aim Of This Paper Is That To Trace And Check The Luggage At Different Security Stages At The Airports And Inform The Passenger About The Status Of His/her Luggage Every Time The Luggage Passes Each Stage. Every Luggage Attached With An RFID Card With Unique Number. That Number Is Given To The Passenger At The Entrance Of The Airport. If This RFID Tag Make In Communication With The RFID Reader At The Each Stage, The Data Passes To The PC Through The RS 232 Cable And Checks For Any Prohibited Items Like Metals By Using Metal Sensor Contained In The Luggage. This Checking Of Metals In The Luggage Was Done By The Metal Sensor. If The Metal Detected, The System Gives Alarm And Inform The User Through The Message Using GSM Modem And The Same Information Was Passed To The Database.