• This study successfully employed discrete wavelet transform (DWT) to de-noise fiber Bragg grating (FBG) sensor signals in asphalt pavement, which is essential in precise measurements in structural health monitoring (SHM) applications. • Through extensive parameter evaluation, the study identified optimal mother wavelets and thresholding techniques for enhancing the signal-to-noise ratio (SNR) while preserving signal amplitude. • An optimal decomposition level was established for FBG signal denoising, striking a balance between noise reduction and computational efficiency. • Comparative analysis with other filtering methods demonstrated that DWT-based denoising significantly outperformed these methods. In recent years, the Fiber Bragg Grating (FBG) sensor technology has been increasingly utilized as an optical measurement system in various engineering applications, particularly for structural health monitoring (SHM) purposes. This trend can be attributed to the inherent benefits of FBG sensors, such as their small size, immunity to electromagnetic interference, resistance to corrosion, and high accuracy and sensitivity. Various factors cause noise in the FBG sensor signal, which has a significant effect on measurement precision. As a result, de-noising plays an important role in the use of FBG sensor systems. In this study, strain data collected from FBG sensors embedded in a road section were used to evaluate the performance of discretized wavelet transform (DWT) for denoising FBG signals. The presence of noise poses a significant challenge in accurately measuring low-amplitude strains and light loads. To address this issue, various approaches have been investigated, including the selection of appropriate mother wavelets, levels of decomposition, thresholding functions, and thresholding selection approaches, with the aim of identifying the optimal parameters for effective denoising. The results show that FBG signals could be denoised successfully and low amplitude strains appeared completely without any loss of valuable data. [ABSTRACT FROM AUTHOR]