Wavelets are functions that satisfy certain mathematical requirement and used in
representing data or functions. Wavelets allow complex information such as data compression,
signal recognition, signal and image processing, music and computer graphics etc. The wavelet
decomposition analysis is used most often in wavelet signal processing. It is used in signal
compression as well as in signal identification, although in the latter case, reconstruction of the
original is not always required. The decomposition separates a signal into components at various
scales corresponding to successive octave frequencies. Each component can be processed
individually by a different algorithm. In this work we first try to introduce wavelet and then some of its applications and technique in signal and image processing. Here we also approach a new filtering technique