In this paper, we propose an algorithm on OOV(Out-of-Vocabulary) rejection based on two-stage method. In the first stage, the algorithm rejects OOVs using generic word model, and then in the second stage, for further reduction of false acceptance, it rejects words which have low similarity to the candidate by measuring the distance between HMM models. For the experiment, we choose 20 in-vocabulary words out of PBW445 DB distributed by ETRI. In case that the first stage is processed only, the false acceptance is 3% with 100% correct acceptance, and in case both stages are processed, the false acceptance is reduced to 1% with 100% correct acceptance.