Abstract: Underwater signal processing includes several application areas like military application, disaster detection, finding natural resources, etc. When signal transmits through water, it may get overlap due to some inherent mechanisms like ship noise, wind noise, marine mammals noise, noise generated during all stages of oil production and due to other industrial sources. In this study, the main focus is an analysis of ship and wind noise present in data recorded on the West coast of India. The analysis is based on spectral characteristics of ship noise from the available signal. Identification of noise from the signal is carried out by using spectrogram and edge detection. Then shipping noise is mitigated with the help of discrete wavelet transform and signal to noise ratio is calculated to validate its performance. Software tools like MATLAB, SigView are used for analysis.