Many technologies, such as Radio Frequency Identification (RFID), have been developed to keep pace with rapid changes in society. Additionally, an RFID tag can be integrated with a sensor or actuator (a smart RFID), they can comprise a sensitive wireless network. The potential and utility of smart RFID techniques have increased dramatically. However, based on the distinctive characteristics of RFID and sensors/actuators, they cannot be combined simultaneously using commercial RFID techniques and materials such as poly phenylene sulfide (PPS). Conversely, smart RFID systems will be exposed to harsh environments, including temperature variations, salt corrosion, and violent impact. The current polymeric RFID packaging technique cannot withstand severe environmental conditions for a long period. This study presents a novel integrated packaging technique for sensors and RFID that is fully compatible with the complementary metal-oxide-semiconductor (CMOS) processes to identify the limitations of traditional RFID packaging methods. After several tests in harsh environments, such as strength, corrosion resistance, thermal stress, and simulated washing, the RFID and sensor operated normally. Therefore, the novel encapsulation process for RFID integrated with a sensor overcomes the bottleneck of conventional RFID packaging techniques. The potential of this novel technique is significant and provides a new approach as it achieves high performance and at a low cost. Furthermore, the proposed new technique should prove very useful in applications as smart RFID areas.