Fourier optics has offered a powerful global information analysis and
processing tool to optical domain signals and images and firmly locked
its respectable position in the history of optics. The evolution of w
avelet theory in the past decade, which has created significant impact
s on many areas of information science and engineering, has recently b
een frequently mentioned in optics community. Whether or not this loca
lity-oriented signal analysis and processing tool can play a comparabl
y significant role in optics remains to be answered. The present paper
is intended to summarize important developments and recent progress i
n areas where novel wavelet processing concepts are incorporated into
optics research.