An application of wavelets and multiresolution analysis to density estimation and process monitoring is presented. Wavelet-based density-estimation techniques are developed as an alternative and superior method to other common density-estimation techniques. Also shown is the effectiveness of wavelet estimators when the observations are dependent. The resulting density estimators are then used in defining a normal operating region for the process under study so that any abnormal behavior by the process can be monitored. Results of applying these techniques to a typical multivariate chemical process are also presented.