Donoho et al. suggested a wavelet thresholding denoising method based on discrete wavelet transform. This paper proposes an improved denoising method using a new thresholding function based on translation-invariant wavelet for underwater acoustic measurement. The conventional wavelet thresholding denoising method causes Pseudo-Gibbs phenomena near singularities due to the lack of translation-invariant of the wavelet basis. To suppress Pseudo-Gibbs phenomena, a denoising method combining a new thresholding function based on the translation-invariant wavelet transform is proposed in this paper. The new thresholding function is a modified hard-thresholding to each node according to the discriminated threshold so as to reject unknown external noise and white gaussian noise. The experimental results show that the proposed method can effectively eliminate noise, extract characteristic information of radiated noise signals.