The work aims to study the installation method of RFID tags on wooden flat pallets and its influence on the performance of the tags by the means of simulation and experimental methods. By Ansys FEM simulation, stresses on the RFID tags which were installed on the wooden flat pallets by screw fastening and by adhesive bonding were analyzed while the pallets were subject to the loading and impacting tests. As a comparison, surface stresses on RFID tags and their Read/Write functions were measured and tested by experiments in lab. Seen from the stress analysis results about RFID tag's components and the fastening screw/ adhesive binder, the RFID tags under both installation methods had not fallen off or physically damaged. And the RFID tags kept their Read/Write functions. Stress analysis results obtained by FEM simulation and by experimental tests were consistent with each other. Thus, the correctness of these results was verified. It is illustrated that both screw fastening and adhesive bonding can meet the need of installing RFID tags on pallets. Screw fastening shows better durability. The result provides theoretical support for the selection of the installation method of RFID tags in wooden flat pallets.