This paper describes an investigation into the dry-band arcing mechanism leading to erosion of filled silicone rubber in the DC inclined plane test. Good correlation is obtained between the formation of surface residue, hotspots and the eroding dry-band arcing. The hotspots detected by infrared camera correlates well with the temperature of degradation determined by thermogravimetric analysis and differential scanning calorimetry. To characterize the physical mechanism of dry-band arcing, wavelet-based multiresolution analysis up to seven levels of resolution is applied to the leakage current waveforms. The analysis shows that both stable and intense discharges characterize the eroding dry-band arcing. A time-to-eroding parameter is proposed to determine the relative resistance to the formation of residue. Faster accumulation of residue is evident under -DC than +DC. Earlier inception of erosion is obtained for the silica filled-as compared to the alumina tri-hydrate filled-silicone, in which the release of the water of hydration is postulated to suppress the residue formation.Index Terms -Inclined plane test, silicone rubber, residue, dry band arcing, hotspot, erosion, wavelet transform, multiresolution analysis, alumina trihydrate filler, silica filler, HVDC insulation.