Rendering of 3D terrain data in real-time is difficult because of its large scale. So, it is necessary to use level-of-detail(LOD) that uses fewer data, but makes almost similar image to the original. We present an algorithm for real-time LOD generation and rendering of 3D terrain data. The algorithm applies wavelet transform to the terrain data, and then generates quadtree based view-dependent LOD using wavelet coefficients that are the output of wavelet transform. It also uses frame-to-frame coherence and view culling for high frame rates.