The optical wavelet filter is designed. It can filter and choose frequency swiftly. It can realize demodulation of distributed fiber Bragg grating(FBG) measurement system. Its scanning resolution and scanning period depend on wavelet function. Wavelet function is controlled by computer. Compared to conventional scan filter, optical wavelet filtering has some advantages such as simple structure, high scan frequency, high resolution and good linearity. At last, the error of optical wavelet filter scanning procedure is analyzed. Scanning step length refers to the shifting of optical wavelet window’s central frequency. It affects system precision directly. If scanning step length is different, the measured signal is different. The methods of reducing step length guarantee scanning periodic time are presented.