Radio frequency Technology (RFID) is an automatic identification technology It consists of a transponder or »tag». The tag is the data carrying element of an RFID system. The »reader» contains a radio frequency receiver and sometimes a transmitter, a control unit and an antenna to provide data retrieval or communication with the tag. The following project proposes to build a Self-Aware Inventory System based on IBM Security Directory Integrator (IBM SDI), RFID and sensors. IBM Security Directory Integrator can convert data received into a form which can then be processed further. This system consists of ultrasonic sensors, RFID tagged objects and an RFID reader which would gather information and detect current status of objects within the system. The end user would be alerted with regular updates about contents of the system and required actions to be performed. A typical application/implementation of such a system would lie in Internet of Things (IoT). For example, a RFID System enabled refrigerator. Here, the tags on perishable and non-perishable item will be sensed by the RFID reader and information such as expiry date, type of item, or quantity is recorded into the database. This data would then be processed by IBM SDI and converted into a form which can then be displayed on a customized GUI. © 2016 IEEE.