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The paper presents a development of the multi sensor embedded system for measuring up to eight sensor parameters optimized by appropriate algorithms. Since most of the industrial applications use the analog sensors with transmitters for sensing the process parameters particularly in harsh environment because of their strong mechanical packaging and ruggedness. Then the benefits of digital technology in the vast world of analog sensors can be implemented by development of appropriate multi sensor embedded system. The developed system has most of the features of smart sensing and communicating to other embedded/Host PC through a wireless interface. The developed prototype system has been tested with RTD temperature sensors for temperature measurement over a wireless connectivity for various distances. Further, the average loss in signal is measured and received power is calculated and compared. Finally, the effect of obstacles at indoor and outdoor range on wireless transmission has been presented. It is observed that for better transmission of signals via wireless communication, the low frequency along with low baud rate and line of sight range is required to minimize the signal loss.