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In RFID system, one of the problems that we must solve is the collision between tags that may occur when a reader attempts to read a number of tags simultaneously. Most of the popular anti-collision algorithms are based on the ALOHA-type algorithm, which are simple and show good performance when the number of tags to read is small. However, for ALOHA-type algorithms the time required to read the tags generally increases exponentially as the number of tag increases. Thus, they are not very efficient when the number of tags to read is large. In the paper, we propose a new anti-collision algorithm called Enhanced Dynamic Framed Slotted ALOHA (EDFSA) in which the time required to read the tags increases linearly with the number of tags. The proposed algorithm estimates the number of unread tags first and adjusts the number of responding tags or the frame size to give the optimal system efficiency. Simulation results show that the proposed algorithm improves the reading rate of data of the tags by 85~100% compared to the conventional algorithms. [ABSTRACT FROM AUTHOR]