Supply chain is a seamless network of activities and stakeholders involved in any business. It ensures a smooth flow of goods, products and services. In the modern global setting, supply chains have become more complex and inclusion of technology is providing great benefits. Robust technology is needed for identification, tracking and monitoring of the various goods and assets during the supply chain. One such emerging technology for this is RFID sensors. RFID is a popular wireless technology capable of collecting, storing and transmitting data and thus identifying, tracking and communicating. The two main components of RFID systems are tags and readers each of which perform a crucial and specific function. Tags are basically the memory, storing data received by the reader. Readers retrieve the data and transmit it to tags using an antenna. RFID technology has greatly replaced its counterpart and competitive technology- barcodes, in supply chains. It provides various benefits as compared to barcodes due to which it has got increased attention in various fields such as supply chains, healthcare, agriculture, food industry, manufacturing, libraries, security etc. Supply chain management deals with the flow of activities or processes included in any business, production activities. During this entire journey from raw material procurement to final dispatch a number of smaller supply chains are included each of which are critical. RFID technology has been largely deployed in supply chain management in order to identify, track and store information. These RFID systems enable real time monitoring of the supply chain and gives an upper-hand as compared to barcodes. RFID systems are not only used for storing and retrieving product data but also to monitor and track the flow of the entire supply chain. In the case of cold chains, RFID systems are used for maintaining the environment needed for ensuring quality of food products. Various such applications of these sensors in supply chains have been identified and deployed, However, still this technology remains to be dormant to some extent in supply chain industry. This review paper is aimed at doing a thorough literature review of RFID technology, its deployment in the supply chain domain, and challenges faced.