This work aims at developing an adaptive wavelet thresholding algorithm for speech enhancement with significant performance improvement over other wavelet-based counterparts. This is accomplished through the formulation of the optimum threshold for noise reduction, based on the generalized Gaussian priors to fully characterize the statistics of speech and noise wavelet coefficients. In addition, through the frame-wise context modeling which enables tracking of the statistical characteristics of each individual coefficient on the frame-wise basis, the optimum threshold is accurate and adaptive at both the coefficient level and frame level. The frame-wise context model is formulated by virtue of the context subspace projection of the wavelet coefficients, with the context index employed as the invariant correspondence between successive frame parameters, thereby enabling the frame-wise tracking at the coefficient level. Simulation results show significant improvement over the wavelet-based speech enhancement algorithms in terms of the segmental signal-to-noise ratio improvement by as much as 226%, the perceptual evaluation of speech quality by 36%, the short-time objective intelligibility by 17.8% and the cepstral distance by 33.3%. When benchmarked with the well-established short-time-Fouriertransform-based counterparts, the proposed wavelet thresholding algorithm offers favorable and more robust performances, particularly under non-stationary noise conditions, with no adverse musical noise effect.INDEX TERMS context modeling, speech enhancement, wavelet thresholding.