The wavelet transform-based adaptive multiuser detection algorithm is presented. The novel adaptive multiuser detection algorithm uses the wavelet transform for the preprocessing, and wavelet-transformed signal uses LMS algorithm to implement the adaptive multiuser detection. The algorithm makes use of wavelet transform to divide the wavelet space, which shows that the wavelet transform has a better decorrelation ability and leads to better convergence. White noise can be wiped off under the wavelet transform according to different characteristics of signal and white noise under the wavelet transform. Theoretical analyses and simulations demonstrate that the algorithm converges faster than the conventional adaptive multiuser detection algorithm, and has the better performance. Simulation results reveal that the algorithm convergence relates to the wavelet base, and show that the algorithm convergence gets better with the increasing of regularity for the same series of the wavelet base. Finally the algorithm shows that it can be easily implemented.