A novel wavelet network based adaptive equalizer (WNBAE) is presented and the structure and stochastic gradient learning algorithm is given. The proposed WNBAE has better performance than that of the conventional linear transversal equalizer based on the LMS and the RLS algorithms, as well as that of the decision feedback equalizer based on the RLS algorithm, especially for MQAM digital communication reception systems over the nonlinear channels. In addition, it outperforms the BP neural network based adaptive equalizer slightly. However, it has a slow convergence rate and a high computational complexity. Several simulations are performed to evaluate the behavior of the WNBAE.