Wavelets have been widely applied in such research areas as image processing, computer vision, network management and data mining. Wavelets have many favorable properties, which are hierarchical and multiresolution decomposition structure, linear time and space complexity of the transformations. The paper presents wavelet application on the algorithms of data mining, in cluding as clustering, classification, distributed data mining, similarity search, approximate query processing, visualization and so on. Finally, the paper concludes by discussing the impact of wavelets on data mining research and outlining potential future research directions and applications.