Abstract: Watermark embedding algorithm based on critical band wavelet transform of digital audio signal is proposed in this paper. The masking threshold for each audio signal segment was calculated on the basic of psychoacoustic model. According to the similarity between critical band of human auditory system and critical band wavelt transform, a watermark was embedded into the low-band and mid-band coefficients of digital wavelet. The embedding strength was adaptively controlled by the masking threshold. The experiment results show that the embedded watermark signal is inaudible, and the watermarked audio signal has good robustness against many attacks such as compression, noise, re-sampling, low-pass filtering.