We propose to develop and apply novel techniques for enhancing the detection of cluttered targets using the wavelet transform. Since the feasibility of the algorithms and hardware implementations developed in Phase I have been demonstrated by computer simulation, the Phase II effort will be focused on experimental characterization and prototype development. Wavelet functions suitable for representing features of various classes of targets will be investigated. Wavelet processors for 1-D and 2-D target detection will be experimentally demonstrated in the laboratory. To ensure high performance, the functions of these wavelet processors may be limited to locating the regions of interest (ROIs) where targets may exist. The task of target identification and classification are left to post processing. Based on the results of experimental studies as well as the requirements of the contract sponsor, an optical implementation architecture will be identified for prototype development. A prototype system will be built, characterized, tested and delivered by the end of the Phase II period.