Aimed at the problem of large errors in traditional power cable temperature measurement methods, a method based on edge computing and radio frequency identification (RFID) is proposed. Firstly, a RFID electronic label design scheme was constructed utilizing the radio frequency signal between alternating electromagnetic fields to achieve the communication and information identification between two devices. Then, the design of power cable edge intelligent terminal is analyzed from the aspects of hardware and software. On this basis, the early warning criterion formula of power cable temperature fault state is abstracted by using edge computing algorithm. Based on edge computing and RFID, the corresponding temperature measurement method is proposed. Finally, the proposed power cable temperature measurement method is compared with other three methods through simulation experiments. The results indicate that the temperature measurement error of the proposed method is the minimum under different currents and in cross-sectional areas. Compared to the other three methods, the maximum improvement is 5.15% and 7.92%, while the minimum improvement is 1.05% and 1.45%, which outperforms the comparable algorithms in terms of performance.