Abstract: Based on modulating function method, an approach to identification of linear continuous time system is considered. Based on wavelet analysis theory, an approach to construction of multiresolution modulating functions is proposed, and the gaussian wavelet modulating functions are designed. Taking a second-order model as an example, the relationship between the accuracy of identification and the parameters of modulating window is investigated, and some tips about designing wavelet modulating function are outlined. The validity and efficiency of proposed algorithm are illustrated by the representative numerical results.