This 2nd edition is an update of the book "Wavelet Theory and Its Application to Pattern Recognition" published in 2000. Three new chapters, which are research results conducted during 2001-2008, will be added. The book consists of two parts - the first contains the basic theory of wavelet analysis and the second includes applications of wavelet theory to pattern recognition. The new book provides a bibliography of 170 references including the current state-of-the-art theory and applications of wavelet analysis to pattern recognition. Continuous Wavelet Transforms Multiresolution Analysis and Wavelet Bases Some Typical Wavelet Bases Step-Edge Detection by Wavelet Transform Characterization of Dirac-Edges with Quadratic Spline Wavelet Transform Construction of New Wavelet Function and Application to Curve Analysis Skeletonization of Ribbon-like Shapes with New Wavelet Function Feature Extraction by Wavelet Sub-Patterns and Divider Dimensions Document Analysis by Reference Line Detection with 2-D Wavelet Transform Chinese Character Processing with B-Spline Wavelet Transform Classifier Design Based on Orthogonal Wavelet Series