Abstract: In this paper, characteristics of the available algorithms for wavelet transform, indirect wavelet transform and direct wavelet transform, are briefly reviewed. It is pointed out that the available algorithms cannot fulfill efficiently the analysis of signals in earthquake engineering. On the basis of direct wavelet transform, an enhanced algorithm for wavelet transform is put forward. The algorithm is developed with the advantages of FFT and the characteristics of tight support in frequency domain of wavelet. It is shown that the algorithm exhibits high precision and good efficiency and meets the requirements of the signal analysis in earthquake engineering.