A radio frequency (RF) telemetry system with a shape memory alloy microelectrode was designed and fabricated. The total size and weight are 15 mm x 8 mm and 0.1 g, respectively. Since the telemeter is small and light enough to be loaded on a small animal such as an insect, the system can be used for the neural recording of a freely moving insect. The RF-telemeter can transmit signals by frequency modulation transmission at 80-90 MHz. The transmitted signals can be received up to about 16 meters away from the telemeter with a high signal-to-noise ratio. The neural activity can be detected without attenuation by using an instrumentation amplifier with its input impedance set to 2 Mohms at 1 kHz. The telemeter was loaded on a cockroach and the neural activity during a free-walk was successfully measured through this telemetry system.