An effective waste management is a key to attaining long-term environmental sustainability in the modern era. To counteract the increasing problem of inappropriate disposal of waste, this project presents a revolutionary, incentive-driven smart waste segregation system that uses RFID technology and a set of sensors to streamline the segregation of waste and promote green behavior. Every user is allocated an individual RFID tag, relating their waste disposal operations to their identity upon scanning. The system distinguishes waste through a set of different sensors: an inductive proximity sensor identifies metal waste, a moisture sensor determines wet waste, and any waste not identified by the former two sensors is classified as dry waste. Ultrasonic sensors and load cells also detect the level of fill and weight of waste dumped to guarantee proper data gathering for processing. This information is relayed in real-time to IoT platforms like Blynk or ThingSpeak so that users and administrators can view bin status, types of waste, and user behavior through a web or mobile dashboard. This openness raises accountability and gives actionable insights to enhance waste management practices. To further encourage responsible waste disposal, the system has a gamified incentive model. Users receive points depending on the category and quantity of waste they properly segregate, which can be redeemed or used to monitor personal environmental contributions. The model turns a mundane civic obligation into an exciting and rewarding experience. Overall, the system encourages source-segregation on an auto mode and instills a culture of green responsibility by leveraging technology-based incentives. It is a scalable, intelligent solution that has the potential to substantially enhance waste management processes in urban areas.