Abstract: In order to solve the limitation of single resolution in optical signal processing with traditional frequency domain denoising method, a multi-resolution wavelet denoising method was put forward. The effectiveness of wavelet denoising method was verified through contrast. According to the high requirements of hardware platform in wavelet denoising method, a field-programmable gate array (FPGA) was put forward as hardware platform. The wavelet denoising method based on distributed algorithm transforms complicated multiplication to simple parallel look-up table accumulation process. It improved the computational efficiency and completed the hardware transplantation. A storage testing system based on FPGA was designed and the hardware verification was realized. Experimental results showed that the denoising effect was well realized on FPGA.