The WCHF-FSJTC (wavelet circular harmonic function frequency selective joint transform correlator) using th wavelet transformed CHF as the reference image in FSJTC is proposed for rotation invariant pattern recognition. Since the wavelet transform has the property of feature extraction, the proposed system can have the better DC (discrimination cpability) and the higher SNR(signal to noise ratio) compared with the conventional CHF-CJTC(circular harmonic function conventional joint transform correlator). And since the structure of the proposed system is FSJTC which can eliminate auto-correlation and cross-correlation between input images, it can eliminate false alarm caused by the overlapping among correlation peaks. The used wavelet functio is the morlet function, which is proper for the reference image used in this paper. the optimal dialation parameter and oscillation frequency of the wavelet function are also achieved with varying the parameters of the wavelet function. The computer simulation shows that the proposed system has the best performance when the dilation parameter is 0.8 and the oscillation frequency is 0.48.