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We propose an effective technique using a wavelet-based temporal decomposition algorithm to detect single-pixel targets with motion from frame to frame. We next integrate the proposed detection algorithm with an interacting multiple-model method and multiple filter bank approach to provide an effective solution for tracking multiple single-pixel nonmaneuvering and maneuvering targets. Through Monte Carlo simulations, we establish the efficiency and robustness of the proposed approach. Based on exhaustive empirical study, we demonstrate the effectiveness of our proposed approach in tracking multiple single-pixel targets in a sequence of infrared images with clutter and occlusion due to moving clouds in airborne applications.