The feasibility was explored in determination of reducing sugar content of potato granules based on wavelet compression algorithm combined with near-infrared spectroscopy. The spectra of 250 potato granules samples were recorded by Fourier transform near-infrared spectrometer in the range of 4 000～10 000 cm-1. The three parameters of vanishing moments, wavelet coefficients and principal component factor were optimized. The optimization results of three parameters were 10, 100 and 20, respectively. The original spectra of 1 501 spectral variables were transfered to 100 wavelet coefficients using db wavelet function. The partial least squares (PLS) calibration models were developed by 1 501 spectral variables and 100 wavelet coefficients. Sixty two unknown samples of prediction set were applied to evaluate the performance of PLS models. By comparison, the optimal result was obtained by wavelet compression combined with PLS calibration model. The correlation coefficient of prediction and root mean square error of prediction were 0.98 and 0.181%, respectively. Experimental results show that the dimensions of spectral data were reduced, scarcely losing effective information by wavelet compression algorithm combined with near-infrared spectroscopy technology in determination of reducing sugar in potato granules. The PLS model is simplified, and the predictive ability is improved.