Abstract: Drilling needs to master the drilling process, and identify the stratum in real time, which is a key factor in improving the drilling efficiency.According to the bit excited in the layers with different characteristics of the vibration signal, the paper put forward correlation function-wavelet transform analysis.Cross-correlation will be used to extract the delay information of pre-sentence level or target level, and time-frequency components are extracted by using multi-resolution analysis of wavelet to determine the stratum in real time.Both simulations and experimental research prove that cross-correlation-wavelet transform can accurately characterize the time delay and time-frequency information, and forecast bit drilling situation and information, has high accuracy of real-time and some practical value in improving the efficiency.