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Corrosion of reinforcing steel and other embedded metals is the main cause of severe deterioration in reinforced concrete structures which subsequently imposes adverse effects on ultimate and serviceability limit state performance of the whole structure. In this paper, a new corrosion detection method for reinforced concrete beams, based on wavelet analysis is presented. To evaluate the capability and efficiency of the method, a simply supported RC beam was modeled in 3-D taking into account the behaviors of concrete, steel and bond degradation. Deflection profile and mode shapes were extracted numerically and analyzed by wavelet transform. From the findings of the modeling, it can be concluded that this wavelet-based method is capable of detecting corrosion at its earliest stage. It is also concluded that both discrete and continuous wavelet transforms can be used and mother wavelet type has no significant effect on the results.