Pasting the Radio Frequency Identification (RFID) tag on the shell of computer so that to trace the location of computer in real time has been the most frequently used method for terminal location management. However, RFID tag would lose the direct control of the computer when it is out of the authorized area. Therefore, the terminal location management system based on the firmware and RFID was proposed. First of all, the authorized area was allocated by RFID radio signal. The computer was allowed to boot only if the firmware received the authorized signal of RFID on the boot stage via the interaction between the firmware and RFID tag. Secondly, the computer could function normally only if it received the signal of RFID when operation system is running. At last, the software Agent of location management would be protected by the firmware to prevent it from being altered and deleted. The scenario of the computer out of the RFID signal coverage would be caught by the software Agent of the terminal; and the terminal would then be locked and data would be destroyed. The terminal location management system prototype was deployed in the office area to control almost thirty computers so that they were used normally in authorized areas and locked immediately once out of authorized areas.