Radio-frequency identification (RFID) and mechatronic technology has been applied to a laundry sorting system which can potentially be used by rest homes in the future to reduce the labour intensity of care givers, to increase the efficiency of laundry sorting, and to reduce the chance of garments being lost. A laboratory laundry identifying and sorting conveyor belt has been built. Several different types of RFID labels/tags have been considered and tested. A type of small RFID laundry tag, suitable for the laundry sorting conditions of a rest home, has been selected. The laundry tags have undergone endurance testing under actual washing and drying conditions with typical commercial laundry chemical products used in rest homes. There was a major challenge using commercial RFID tags in the proposed intelligent laundry sorting system due limitations in their antenna and signal receiving systems. A strategy to coordinate the orientations of the tags, range of the antenna, and the amplification of signal receiving units has been investigated. Several antenna designs to improve the identification rate have been tested and analysed for the selected small laundry tags, since the tag-receiver system has to work beyond the recommended range. A programme for signal detection and processing has been produced. The programme has taken into consideration the speed of the conveyor belt, antenna receiving range and the time required to process signals. It works with satisfactory precision at a satisfactory speed. A sorting strategy for implementation after laundry garment identification has been investigated. This strategy considers aspects of simplicity, multifunction and compactness of mechanical structure. A virtual sorting system has been produced to test the principles of the sorting strategy and the antenna design. The results of these tests will help us to move to the next stage, the design of a prototype laundry sorting system.