Abstract: To solve the problem of compensation of roll eccentricity signal of hydraulic automatic gauge control(AGC) system, a new method based on adaptive threshold de-noising method is proposed. The new method can self-adaptively decide the threshold of wavelet analysis, and make the SNR as a function of the parameter of the filter to acquire the optimal threshold parameter using golden section method. Simulation shows that the result of de-noising with this new method is much better than the original method and have a better result on the compensation of roll eccentricity signal on hydraulic AGC system.