Managing tools manually is easy to cause losing and untraceable, as well as low efficiency and time consuming, it cannot meet the needs of modern enterprises. Aiming at this problem, it proposes an embedded tool management system based on ARM. This system uses S3C2416 as the master device, control the Radio Frequency IDentification (RFID) read-write device to detect tool, control LCD touch screen as human-computer interaction tools, control IC card reader to judge the user permissions. To implement tools borrow-return information generated automatically, and can at any time query and upload the history information, as well as the use of ultrasonic ranging sensors to detect whether someone is operating, to switch the status of the system, thus reducing power consumption. The experimental results show that the system is simple and quick to operate, greatly reduces the time of tool retrieval and information generation, improves the working efficiency, and can accurately track the use of tools, which has a good market prospect.