A tamper indicating padlock assembly for providing remote indication of tampering with the lock mechanism of the padlock includes a padlock having a padlock housing, an arm extending from the padlock housing, and a locking mechanism selectively engaging the arm. A sensor is positioned in the padlock housing for sensing movement of the arm within the padlock housing. The sensor is operationally coupled to a processor. A transmitter is operationally coupled to the processor for transmitting a tamper signal upon the sensor detecting movement of the arm relative to the housing. A key is provided to release the arm from the locking mechanism. A remote alarm assembly has a remote receiver for receiving the tamper signal. The remote alarm assembly includes a remote tamper indicator operationally coupled to the remote receiver for providing an indication of tampering to a user when the remote receiver receives the tamper signal.