The lost pet notification system includes three elements: a pet collar that automatically activates an alarm once the pet becomes lost, a portable hand held unit that continually monitors the location of the pet, and a base station that automatically transmits a signal to the owner once the portable unit determines that the pet is lost. The pet collar continually receives a polling signal from the portable unit while the pet is within transmission range of the portable unit. In response to each polling signal, the pet collar transmits a reply signal to the portable unit. Once the polling signal can no longer be detected by the pet collar, the pet collar automatically activates an alarm. In addition, the portable unit activates an alarm and also transmits a notification signal to the base station. Once the notification signal is received, a the base station automatically places a telephone call to the predetermined telephone number and plays the associated message to alert the pet owner that the pet is lost. If the pet comes back within the transmission range of the portable unit, the portable unit transmits a second notification signal to the base unit which will places a second call to the owner to notify him or her that their pet is safe. The invention may also include advanced features such as a paging unit for receiving information, a global positioning device, a RF beacon transmitter, and cellular telephone emulator to transmit information to a monitoring station.