Abstract: Wavelet analysis has been widely used in seismic data processing in recent years, whereas its use in seismic data interpretation and reservoir characterization is not common. Based on the theoretical analysis of wavelet transformation, this paper showed that the resolution of seismic data can be improved with wavelet transform, therefore identification of thin sandstone reservoirs is possible. The implementation of identifying thin sandstone reservoirs via wavelet analysis and its effectiveness is illustrated by the characterization of thin meandering channel sandstone reservoirs in the upper member of Guantao Formation in Chengdao area.