In order to select the sheep with better characters than others into the core group, a handheld terminal, used for sheep breeding information management, was developed by combining RFID, ZigBee wireless communication and ARM. The handheld terminal was mainly designed with ARM core board based on S3C6410 processor, 125kHz RFID reader, ZigBee wireless communication module based on CC2530 chip and multi-functional baseboard. In the process of software development, the embedded Linux system environment with the hardware device drivers mentioned above were established. ARM was used to receive real-time RFID reader data by using Qt/Embedded signal/slot. Through running ZigBee2007 protocol stack under the OSAL operating system, the communication was realized between ARM and ZigBee network. Some background application programs, such as the touch screen interface and serial communication, communication instruction, soft keyboard, buzzer, Chinese display etc., were designed based on Qt, which had functions of daily management, breeding management and disease management. Field test results showed that the handheld terminal could collect, enter, store, copy and query sheep breeding information in real-time, and communicate with the host computer through ZigBee wireless network. It was proved that the developed system could meet the needs of sheep information management.