The aim of this study is to propose a new evaluation method of gear dynamics using continuos and discrete wavelet transforms. The Wavelet Transform (WT) is a method for the time-frequency analysis of signals. In order to evaluate the difference in the gear dynamics due to the gear material, the dynamic characteristics of gear were measured using a power circulating gear testing machine. The gear dynamics were analyzed in a time-frequency domain by the continuos and discrete WTs. The new evaluation method using the WTs proposed in this paper was very useful compared with the conventional one to investigate the damping characteristic and the dynamic condition of the gear equipment.