Wavelet transforms originated in geophysics in the early 1980s for the analysis of seismic signals. Since then, significant mathematical advances in wavelet theory have enabled a suite of applications in diverse fields. In geophysics the power of wavelets for analysis of nonstationary processes that contain multiscale features, detection of singularities, analysis of transient phenomena, fractal and multifractal processes, and signal compression is now being exploited for the study of several processes including space-time precipitation, remotely sensed hydrologic fluxes, atmospheric turbulence, canopy cover, land surface topography, seafloor bathymetry, and ocean wind waves. It is anticipated that in the near future, significant further advances in understanding and modeling geophysical processes will result from the use of wavelet analysis. In this paper we review the basic properties of wavelets that make them such an attractive and powerful tool for geophysical applications. We discuss continuous, discrete, orthogonal wavelets and wavelet packets and present applications to geophysical processes.¿ 1997 American Geophysical Union