This paper proposes a compact microstrip Yagi-Uda antenna for 2.45 GHz Radio Frequency IDentification (RFID) handheld reader applications. The proposed antenna is etched on a piece of FR4 substrate with an overall size of 65 mm ? 55 mm ?1.6 mm and consists of a microstrip balun, a dipole, and a director. The ground plane is designed to act as a reflector that contributes to enhancing the antenna gain. The measured 10-dB return loss bandwidth and peak gain achieved by the proposed antenna are 380 MHz and 7.5 dBi, respectively. In addition, a parametric study is conducted to facilitate the design and optimization processes for engineers.