Human binaural processing might enhance signal sounds in noisy environments. Binaural speech enhancement with two outputs facilitates merits of both signal processing itself and that by human binaural processing. Most previous studies in this area have implemented signal processing in the time and frequency domains. The use of wavelet transform (WT) appears to be promising because it has a scale domain whose bandwidth is inversely proportional to the scale level. Therefore, it might well be compared to auditory filters. In this paper, a new binaural speech enhancement algorithm applying Complex Wavelet Transform is proposed. Experiments of objective and subjective evaluations with a directional target signal and an interference sound source generated by convolving HRTFs were conducted to demonstrate the effectiveness of the proposed algorithm.