We introduce a new method for coarse-graining polymer chains, based on the wavelet transform, a multiresolution data analysis technique. This method, which assigns a cluster of particles to a coarse-grained bead located at the center of mass of the cluster, reduces the complexity of the problem significantly by dividing the simulation into several stages, each with a small fraction of the number of beads in the overall chain. At each stage, we compute the distributions of coarse-grained internal coordinates as well as potential functions required for subsequent simulation stages. We show that, with this wavelet-accelerated Monte Carlo method, coarse-grained Gaussian and self-avoiding random walks can reproduce results obtained from atomistic simulations to a high degree of accuracy in orders of magnitude less time. (c) 2005 Wiley Periodicals, Inc.