An Ultra High Frequency (UHF) Radio Frequency Identification (RFID) system using distributed antenna arrays for interrogating RFID tags in a highly multipath environment is demonstrated. The system makes use of phase diversity and beam steering to overcome fading. The tag detection accuracy is compared to a standard fixed antenna system, showing that the presented system is able to deliver more power to the more challenging tags, and therefore is capable of a higher tag read success rate. It is also shown that, whereas a fixed antenna is capable of scanning a single cell, the ability of a phased array to scan through 360° azimuth leads to a reduction in number of antennas required for a multicell system. The experimental results are validated using a 3D field-based propagation model, which enables visualisation of the power distribution in the field of interest, and provides insight into the improved system performance.