An improved multiple target detection technique is proposed by using a wavelet joint transform correlator (JTC). A bank of wavelet filters are generated using the Mexican hat wavelet function and are sequentially superimposed on the joint power spectrum before applying the inverse Fourier transform to yield the correlation output. This technique is found to yield high correlation discrimination for multiple target detection for both binary and gray-level input scenes while avoiding the false alarms as well as rejecting the nontarget objects. An all-optical implementation for the proposed wavelet JTC technique is also suggested. Computer simulation results are presented to confirm the effectiveness of the proposed technique.