Structural health monitoring (SHM) of chemical penetration in composites is a critical issue for their durability as composite storage. Current methods are either complicated or expensive. Besides, the wired sensing system introduces defects in the composite structure. Herein, we present a novel wireless sensing design for detecting aggressive chemicals in composite reservoirs. Remarkably, the sensing system used in this work is cost-effective and easy to be configured. In this study, we used Radio Frequency Identification (RFID) as wireless sensing technology. A sensor embedded composite panel was prepared and tested in a harsh environment, 30 wt% H2SO4. Additionally, we modified an RFID tag with conductive nanocomposite for the aim of selective sensing. We found that the RFID tags are working well as sensors for detecting the chemical penetration in composites. Compared with conventional color-based methods, the presented novel wireless sensing method provides a much earlier warning signal for chemical penetration.