The invention relates to a label collision prevention technology in radio frequency identification and particularly relates to a multi-way tree anti-collision algorithm applicable to an RFID system. The algorithm comprises the steps of appointing the algorithm, initializing prefix stacks, detecting collisions, selecting search modes, determining prefixes, judging prefix stacks, enabling prefix stacks to be null finally, and ending the algorithm. According to the algorithm, a reader-writer is used for judging numbers of adjacent collision bits, an octree search mode, a quadtree search mode or a binary tree search mode free of free timeslots is selected adaptively, the search speed is accelerated, transmission of subsequent data is cut off immediately when three adjacent collision bits are judged, and a counter is used for feeding back the lowest bits in adjacent collision bits within transmission time of a plurality of bits, so that the transmission of the data is reduced, the energy consumption is reduced, free time slots are eliminated, and the identification time is shortened.