RFID technology is a Radio frequency identification system that provides a reader reading the data item from its tag. Nowadays, RFID system has rapidly become more common in our life because of its autonomous advantages compared to the traditional barcode. It can detect hundreds of tagged items automatically at a time. However, in RFID, missing tag detection can occur due to signal collisions and interferences. It will cause the system to report incorrect tag’s count due to an incorrect number of tags being detected. The consequences of this problem can be enormous to business, as it will cause incorrect business decisions to be made. Thus, a Missing Tag Detection Algorithm (MTDA) is proposed to solve the missing tag detection problem. There are many other existing approaches has been proposed including Window Sub-range Transition Detection (WSTD), Efficient Missing-Tag Detection Protocol (EMD) and Multi-hashing based Missing Tag Identification (MMTI) protocol. The result from experiments shows that our proposed approach performs better than the other in terms of execution time and reliability.