Combines the wavelet analysis and neural network, this paper will be processed the data and the traditional BP neural network and kalman filter are analyzed and compared. First of all to obtain data of dam deformation wavelet denoising, excluding the contaminated data, obtain the optimal data set. Threshold denoising is generally adopted. Then based on the BP neural network, wavelet analysis to improve the traditional neural network model. Improve the underlying layer upon layer number and the number of nodes. Combined with the optimized dam deformation data, using the improved network model, the results to the regression model, ordinary kalman filter, this paper compares and analyzes the prediction effect evaluation.Comparison result is more ideal, which indicates that the combination of wavelet neural network model for deformation data processing has a good precision.