Abstract: Wavelets analysis has the characteristics of multi-resolution analysis and ability of expressing local features of signal in both time and frequency domains, it is a local analysis method, the window size of which is fixed and unchanged, the window shape of which can be changed, in both time and frequency domains. In this article, starting from the introduction of brief developing histoiy of wavelets analysis, the basic principle of wavelets analysis is briefly described, analyzing and summarizing the new application fruits of wavelets analysis are emphasized in geophysical exploration and signal and image processing. Further more, the main existing problems of wavelets analysis in applications are descussed,finally, outlook of prospect application fields are given to wavelets analysis.