Abstract: In order to obtain accurate information of acoustic emission (AE) source, effective means to analysis AE signal must be used. Wavelet analysis provides outstanding detailed characteristics both in time and frequency. Coefficients can be obtained through self-adapting decomposing of AE signals in the wavelet multilevel analysis, The frequency, time, energy and other information of AE signal can be observed directly in the phase plane. Meanwhile, it also provides a theoretical basis for wavelet AE signal reconstruction. Based on this, the reconstructed AE signal excludes interference of other signals and can show AE source information more clearly. This method is useful in AE sources analysis.