Abstract: The short circuiting transfer pulses in the CO₂ arc welding have a great interference to the signals processing of the arc sensor.By taking use of the Simulink modeling and simulating in software MATLAB, the problems existed in the traditional signal processing method while handling the signals were analyzed.The authors put forward the current signal software handling method with wavelet analysis, making use of C ++ language and the M document of MTALAB, wrote the S function of the wavelet analy sis with the current signal, combining with the degree pulse signals of the arc sensor proceeded with the dynamic simulation.The result shows that this method can get rid of the short-circuit peak pulse nicely, and the waveform distortion is really small.Through verification of experiments this method is accurate and viable, and provides a new kind of arc sensor signal handing method.