Radio Frequency Identification has been developed for many years and it got much attention from researchers recently as there are lots of applications being used practically in the real world. Owing to the shared wireless channel between tags and reader during communication, the tag collision arbitration is a significant issue for reducing the communication overhead. This paper presents a novel anti-collision algorithm named as EAA (Enhanced Anti-collision Algorithm) which is based on ABS (Adaptive Binary Splitting) algorithm proposed by Myung et al. [5], [6]. We improve the ABS algorithm, and inherit the advantages of the ABS algorithm. EAA uses counter, stack, and Manchester code [2], [3], [9] to reduce the probability of collision efficiently. Compared to the methods proposed by other researchers [1], [5] the performance evaluation shows that the proposed scheme in this paper uses fewer timeslots for indentifying tags.