The wavelet analysis is a novel mathematical method. It is more effective than the existing methods in data compressing and margin detecting due to its predominant properties in local analysis. Based on wavelet transform, a method of feature extracting of radar signal is presented in this paper. The signal's feature is gained by first computing wavelet transform of radar signal, giving a threshold, transforming wavelet coefficients into binary ones and then transforming the binary coefficients into decimal ones. Many experiments of target recognition demonstrate that this method is effective.