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A software filtering method based on wavelet transformation is proposed in this paper, by means of which the detection of acoustic emission signal can be achieved under the high background noise. With this method, the multi-path interference can be eliminated and AE signal can be detected correctly. Moreover, this method can reject noise strongly, for which only a three-scale wavelet transformation of the signal received is needed, and carry out a two-scale wavelet transformation of the candidate wave detected. Also this method provides high calculation efficiency since the Mallat algorithm can be adopted.