A method to inspect fabric defects based on compactly supported biorthogonal wavelet transform is presented. Firstly, the fabric images are captured by CCD camera. Then fabric defects are detected by means of the strategy of compactly supported biorthogonal wavelet transform. The phase shifts with the orthogonal and the biorthogonal wavelet techniques are compared aiming at the warp-lacking. It is shown that the phase shifts of orthogonal wavelet behave as different degrees, the ones of biorthogonal wavelet are zero. Finally, employing the biorthogonal wavelet method to inspect fabric defects, including warp-lacking, weft-lacking, oil stains, and holes, is given by experiments, in which the results are satisfied.