In order to improve the effective extraction of fetal heart rate and prevent fetal distress in utero, a study of fetal heart rate feature extraction based on wavelet transform to prevent fetal distress in utero was proposed. This paper adopts a fetal heart rate detection method based on the maximum value of the binary wavelet transform modulus. The method is simulated by the Doppler fetal heart signal obtained from the clinic. Compared with the original curve, the transformed curve can roughly see the change rule of the original signal and identify the peak point of the signal, but due to the large disturbance of the peak point, the influence on the computer processing is also great. The periodicity of the transformed signal is greatly enhanced, making it easier to deal with the computation. A total of 300 pregnant women with full-term fetal heart monitoring from January 2018 to January 2020 were selected as the research subjects and divided into the observation group and the control group. The observation group consisted of 100 patients with abnormal fetal heart monitoring, and the control group consisted of 200 patients with normal fetal heart monitoring. The uterine contractions and fetal heart rate were recorded, and the incidence of fetal distress, cesarean section, neonatal asphyxia, and amniotic fluid and fecal contamination were observed. The incidence of fetal distress, cesarean section, neonatal asphyxia, and amniotic fluid fecal stain in the observation group were significantly higher than those in the control group. Fetal heart monitoring can accurately judge the situation of the fetus in pregnant women and timely diagnose the abnormal fetal heart rate, which has a better effect on the prognosis of perinatal infants and can reduce their mortality. It can effectively solve the problems existing in the autocorrelation algorithm and extract the fetal heart rate more accurately. It is an effective improved scheme of fetal heart rate extraction. It is very helpful in preventing fetal distress in utero.