Under noise situations, the wavelet coefficient of noise may affect the recognition and character extraction of linear frequency modulation (LFM) signal, especially the condition of S/N (signal-noise-ratio) is lower. The wavelet transform of Gaussian noise and LFM signal is firstly analyzed. Because the modulus maximum value of wavelet coefficient of noise is reduced when increasing the scale, while its amplitude keeps invariable, we propose an adaptive-threshold method, which use the difference of wavelet coefficient between the noise and LFM signal to denoise. This method denotes a threshold according to N/S, when the wavelet coefficient is lower than the threshold, noise can be filtered. For LFM signal, so far as its frequency can bestrew the whole intermediate frequency of the receiver, then according to wavelet coefficient and its space between modulus maximum value, the LFM carrier frequency can be extracted effectively.