Fetal phonocardiography (fPCG) based antenatal care system is economical and has a potential to use for long-term monitoring due to noninvasive nature of the system. The main limitation of this technique is that noise gets superimposed on the useful signal during its acquisition and transmission. Conventional filtering may result into loss of valuable diagnostic information from these signals. This calls for a robust, versatile, and adaptable denoising method applicable in different operative circumstances. In this work, a novel algorithm based on wavelet transform has been developed for denoising of fPCG signals. Successful implementation of wavelet theory in denoising is heavily dependent on selection of suitable wavelet basis function. This work introduces a new mother wavelet basis function for denoising of fPCG signals. The performance of newly developed wavelet is found to be better when compared with the existing wavelets. For this purpose, a two-channel filter bank, based on characteristics of fPCG signal, is designed. The resultant denoised fPCG signals retain the important diagnostic information contained in the original fPCG signal. © 2013 Vijay S. Chourasia and Anil Kumar Tiwari.