Abstract Computer signal processing is used for quantitative data analysis (QDA) in magnetic resonance spectroscopy (MRS). The main difficulty in QDA is that MRS signals appear to be contaminated with random noise. Noise reduction can be achieved by coherent averaging, but it is not always possible to average many MRS waveforms. Wavelet shrinkage de‐noising (WSD) is a technique that can be employed in this case. The potentialities of WSD in MRS, alone and combined with the Cadzow algorithm, are analyzed through computer simulations. The results can facilitate an appropriate application of WSD, as well as a deeper understanding of this technique. © 2002 Wiley Periodicals, Inc. Concepts Magn Reson 14: 388–401, 2002