The mapping of mesoscale ocean features in the coastal zone is a major potential application for satellite data. The evolution of mesoscale features such as oil slicks, fronts, eddies, and ice edge can be tracked by the wavelet analysis using satellite data from repeating paths. The wavelet transform has been applied to satellite images, such as those from Synthetic Aperture Radar (SAR), Advanced Very High-Resolution Radiometer (AVHRR), and ocean color sensor for feature extraction. In this paper, algorithms and techniques for automated detection and tracking of mesoscale features from satellite SAR imagery employing wavelet analysis have been developed. Case studies on two major coastal oil spills have been investigated using wavelet analysis for tracking along the coast of Uruguay (February 1997), and near Point Barrow, Alaska (November 1997). Comparison of SAR images with SeaWiFS (Sea-viewing Wide Field-of-view Sensor) data for coccolithophore bloom in the East Bering Sea during the fall of 1997 shows a good match on bloom boundary. This paper demonstrates that this technique is a useful and promising tool for monitoring of coastal waters.