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This paper proposes a wavelet transform approach for the evaluation of harmonic contents of power system waveforms. In this approach, the discrete wavelet packet transform is presented to decompose the waveform, and then based on the decomposed coefficient the harmonic contents include frequencies, amplitudes and phases are calculated by continuous wavelet transform. The wavelet transform is introduced briefly in this paper. In order to obtain the uniform frequency sub-bands, the discrete wavelet packet transform is used to decompose the waveform, and then the continuous wavelet transform is employed to calculate the harmonic components. Finally, the developed approach is tested with the synthesised waveforms and obtained results are compared with results of the other methods.