Abstract: A new coding method of speech compression which is based on Wavelet Transform and Vector Quantization (VQ),is developed and studied in this paper.Firstly the speech is processed with Wavelet Transform or Wavelet PacketTransform,then VQ is used to compress the coefficients of Wavelet Transform.The entropy coding is also used todecrease the bit rate.The experimental results demonstrate that the speech signal sampled by 8 kHz sampling rateand 8 bit quantization,so that 64 kbit/s bit rate,can be compressed to 6 kbit/s~8 kbit/s,and still have good speechquality.The low——delay is another advantage for this method,which is only 8 ms.