Active Radio Frequency Identification (Active RFID) is a wireless automated technology used to identify, track, process and share information about an object or from the environment. As microcontrollers and radio frequency transponders are smaller in size, more power efficient, and less expensive, this technology is growing and starting to expand significantly through all the industries. The main purpose of with this project was to reduce the ower consumption of the active tags. This master thesis presents a functional TDMA based protocol which was designed and developed for a specific tracking system application.