Auditory brainstem response (ABR) evaluation has been one of the most reliable methods for evaluating hearing loss. Clinically available methods for ABR tests require averaging for a large number of sweeps (~1000-2000) in order to obtain a meaningful ABR signal, which is time consuming.  This study proposes a faster new method for ABR filtering based on wavelet-Kalman filter that is able to produce a meaningful ABR signal with less than 500 sweeps. The method is validated against ABR data acquired from 7 normal hearing subjects with different stimulus intensity levels, the lowest being 30 dB NHL. The proposed method was able to filter and produce a readable ABR signal using 400 sweeps; other ABR signal criteria were also presented to validate the performance of the proposed method.