The present invention relates to a radio frequency identification (RFID) tag installation system using a vehicle and method thereof. The REID tag is installed on the road to provide a driver with position information and road information such as speed limit, road name. etc in his or her traveling region. By using our present invention, RFID tag can be installed with small manpower in a short time. The system uses two CCD cameras, two GPS receivers, an INS and a DMI, and includes: a vehicle position and yaw extractor by using the two GPS receivers; orientation extractor for the vehicle by using INS, a GPS/INS/DMI integrator for GPS outage and for INS error correction; two cameras interior/exterior orientation extractor for the CCD cameras; a target position extractor for finding 3-dimensional coordinates; a road information storage for supplying road information such as a speed limit and a route number of a road; an REID tag writer for inputting the information obtained from the target region position extractor and the road information storage; and an REID tag installer for attaching the REID tag on the road.