This paper deals with the multiresolution analysis of wavelet transform for partial discharge(PD). Test arrangement is based on the needle-plane electrode system and applied AC high voltage. The measured PD signal was decomposed into "approximations" and "details". The approximation are the high scale, low-frequency components of the PD signal. The details are the low-scale, high frequency components. The decomposition process are iterated to 3 level, with successive approximation being decomposed in turn, so that PD signal is broken down into many lower-resolution components. Through the procedure of signal wavelet transform, signal noise extraction and signal reconstruction, the signal is analyzed to determine the magnitude of PD.