The wavelet transform-domain least-mean square (WTDLMS) algorithm uses the self-orthogonalizing technique to improve the convergence performance of LMS. In WTDLMS algorithm, the trade-off between the steady-state error and the convergence rate is obtained by the fixed step-size. In this paper, the WTDLMS adaptive algorithm with variable step-size (VSS) is established. The step-size in each subfilter changes according to the largest decrease in mean square deviation. The simulation results show that the proposed VSS-WTDLMS has faster convergence rate and lower misadjustment than ordinary WTDLMS.