AbstractWith the increasing number of channels in AEM systems, computer data handling is becoming a necessity. The experience gained in processing of seismic and aeromagnetic data cannot be applied directly to low‐frequency (100‐5000 Hz) AEM methods. A novel scheme has been designed for AEM data processing and tested on 2900 km (1800 miles) of Input surveys.In the first step, the digital flight tapes are merged with digitized flight path recovery to form the primary data set. The validity of the raw data is controlled by the computer, but the interpreter has an option of checking them in perspective plots of channel amplitudes. The primary data set is reduced by processors which determine the location and type of anomalies and discard noise. Unlike the widely used deconvolution, the sequential processor determines first the anomaly location and then estimates parameters, such as peak amplitude, base width, and excess area, which are used as acceptance criteria. Interpretation parameters, such as σt, conductor depth, and dip are estimated by comparison with quantitative models. The recorded channel amplitudes are plotted together with the selected interpretation parameters in a profile form. The secondary data set which includes only the interpretation parameters for selected anomalies is graphically displayed as a schematic map of apparent σt. Elongated features are traced by a fan strike recognition routine and a trend map is automatically compiled and plotted. Disk storage is essential for second pass processing during which parts of the primary data set are searched for undiscovered anomalies matching the analyzed trend. The suggested procedure for AEM data processing is demonstrated on an Input MK V survey, Southern Indian Lake, Manitoba.