Tag collision has a negative impact on the performance of RFID systems. In this letter, we propose an algorithm termed anti-collision protocol based on improved collision detection (ACP-ICD). In this protocol, dual prefixes matching and collision bit detection technique are employed to reduce the number of queries and promptly identify tags. According to the dual prefixes matching method and collision bit detection in the process of collision arbitration, idle slots are eliminated. Moreover, the reader makes full use of collision to improve identification efficiency. Both analytical and simulation results are presented to show that the performance of ACP-ICD outperforms existing anti-collision algorithms.