The algorithm of wavelet decomposition and reconstruction are applied in the audio error concealment method in this paper. When there is lost frame of the audio signal, the correct frames which lie before and after the lost frame are wavelet decomposed firstly. Then the two sets of the wavelet coefficients obtained from the wavelet decomposition are utilized to get the wavelet coefficients for the lost frame. Finally the concealment of the lost frame is completed by the wavelet coefficients reconstruction. Comparing to the performance of the traditional audio concealment algorithm, the proposed method is better for audio frame reconstruction.