The wavelet transform has a lot of uses in the field of optical information processing. It's an effective
technology applied to joint transform correlator system. It realizes the detection, identification and positioning of target. Joint transform correlator has not only high speed for identification but also high accuracy for positioning. This paper has discussed the application of Gauss wavelet function on identifying target in clutter background. In fact, it is difficult for joint transform correlator to identify target because the target image information which is collected by the imaging sensor has a lot of background noises. So we propose and demonstrate that the availability of using Gauss wavelet function. We use the method of wavelet transform and morphology algorithm to extract object edge, and get more sharp correlation point. Our computer simulation and optical experimental results showed that the image feature extraction performance of the proposed algorithm is effective and competitive to other image processing algorithm reported in the literature.