A deformable wavelet template (DWT) is proposed for object shape description in this research. Wavelet templates offer not only the global information at lower scales but also local features at higher differential scales. It provides a natural tool for multiresolution representation and can be used conveniently in a hierarchical matching procedure. We first address three main processing steps in the DWT-based ATR system for feature extraction. They are: (1) image preprocessing and target shape extraction, (2) shape feature normalization and (3) wavelet decomposition. Then, a multiscale matching procedure is discussed. The performance of the proposed algorithm is demonstrated with extensive experimental results.