In this paper, the algorithm of the optimal trade-off synthetic discrimination function (OTSDF) filter based on wavelet transform(W_OTSDF) is proposed. And the optimization design is carried out. The advantages of multi-scale analysis and the band-pass filtering features of wavelet transform are taken to improve the correlation output peak intensity and signal-to-noise ratio (SNR) in planar integrated 2f optical correlator. Using Matlab to build the simulation model of the system and get the optimization algorithm of W_OTSDF filter. The simulation results show that in planar integrated 2f system, when the distortion target with rotation, scaling or both of them are recognized, the performance indexes of peak to correlation energy (PCE), peak side-lobe ratio (PSR), and SNR of optimized W_OTSDF filter are all improved greatly, which is compared with OTSDF filter. The theoretical analysis and simulation results all demonstrate that the W_OTSDF filter has better recognition effect than OTSDF filter.