A novel algorithm for ST-segment analysis is developed using the multi-resolution wavelet approach. The system detects the QRS complexes and analyses each beat using the wavelet transform to identify the characteristic points (fiducial points). These fiducial points are, iso-electric level, the J point, and onsets and offsets of the QRS complex and T wave. The algorithm determines the T onset by looking for a point of inflection between the J point and the T peak. Furthermore, detection of characteristic points by the wavelet technique reduces the effect of noise. The results show that the proposed approach gives very accurate ST levels, as compared to the conventional (empirical) technique, at higher heart rates and with different morphologies. The algorithm detects the ST-segment length in 92.3% beats with an error of 4 ms, and in 97.3% beats the error is within 8 ms. The algorithm has been implemented on a TMS320C25 based add-on DSP card connected to a PC to provide the on-line analysis and display of ST-segment data.