For the effective removal of artifacts and the extraction of an improved evoked potential response, we propose the averaging method usin gthe shrinkag eof wavelet coefficients. The wavelet analysis decomposes the measured evoked potentials into scale coefficients with low frequency components and wavelet coefficients with high ones as a resolution level, respectively. and in the course of synthesis evoked potentials, the presented method shrinks the wavelet coefficients, and then reproduces the evoked potentials, and lastly averages it. We measured visual evoked potentials to simulate the averaging method using the shrinkage of wavelet coefficients, and compared it with aveaged signal. As a result of simulations, the proposed method gets improved VEP about 0.2-1.6dB in comparison with the averaging method with daubechies wavelet in the resolution level four.