Abstract: A tool recognition system recognizes a tool selected for a surgical procedure. The tool includes a distal portion configured to perform at least part of the surgical procedure and a proximal portion including a first electronic module that stores tool-identifying electronic information. A surgical handpiece is configured to receive the tool and includes a second electronic module configured to communicate electronically with the first electronic module when tool is disposed in the handpiece. The first electronic module includes a coil that is configured as a radio-frequency identification (RFID) tag antenna. The second electronic module includes a coil that is configured as a radio-frequency identification (RFID) interrogator antenna. In one embodiment, the first electronic module is a transponder that includes a RFID chip and a RFID antenna. Another embodiment includes a surgical tool recognition system for a drill and the tool includes a file.