diff --git a/doc/api/preprocessing.rst b/doc/api/preprocessing.rst
index f1d60cfdc3b..2e7047eb4b9 100644
--- a/doc/api/preprocessing.rst
+++ b/doc/api/preprocessing.rst
@@ -137,6 +137,7 @@ Projections:
    short_channels
    scalp_coupling_index
    temporal_derivative_distribution_repair
+   motion_correct_wavelet
 
 :py:mod:`mne.preprocessing.ieeg`:
 
diff --git a/doc/changes/dev/13692.newfeature.rst b/doc/changes/dev/13692.newfeature.rst
new file mode 100644
index 00000000000..df228454446
--- /dev/null
+++ b/doc/changes/dev/13692.newfeature.rst
@@ -0,0 +1 @@
+Add :func:`mne.preprocessing.nirs.motion_correct_wavelet` (alias ``mne.preprocessing.nirs.wavelet``) for wavelet-based motion correction of fNIRS data (spike removal via SWT and IQR thresholding), based on Homer3 ``hmrR_MotionCorrectWavelet`` :footcite:t:`MolaviDumont2012`, by :newcontrib:`Leonardo Zaggia`.
diff --git a/doc/changes/names.inc b/doc/changes/names.inc
index 09c5818b6af..d4ff059b795 100644
--- a/doc/changes/names.inc
+++ b/doc/changes/names.inc
@@ -182,6 +182,7 @@
 .. _Laurent Le Mentec: https://github.com/LaurentLM
 .. _Leonardo Barbosa: https://github.com/noreun
 .. _Leonardo Rochael Almeida: https://github.com/leorochael
+.. _Leonardo Zaggia: https://github.com/leonardozaggia
 .. _Liberty Hamilton: https://github.com/libertyh
 .. _Lorenzo Desantis: https://github.com/lorenzo-desantis/
 .. _Lukas Breuer: https://www.researchgate.net/profile/Lukas-Breuer-2
diff --git a/doc/references.bib b/doc/references.bib
index 12d63458bd1..cad83673772 100644
--- a/doc/references.bib
+++ b/doc/references.bib
@@ -866,6 +866,17 @@ @article{HouckClaus2020
 	year = {2020}
 }
 
+@article{HuppertEtAl2009,
+  author = {Huppert, Theodore J. and Diamond, Solomon G. and Franceschini, Maria A. and Boas, David A.},
+  doi = {10.1364/AO.48.00D280},
+  journal = {Applied Optics},
+  number = {10},
+  pages = {D280-D298},
+  title = {{{HomER}}: a review of time-series analysis methods for near-infrared spectroscopy of the brain},
+  volume = {48},
+  year = {2009}
+}
+
 @article{Hyvarinen1999,
   author = {Hyvärinen, Aapo},
   doi = {10.1109/72.761722},
@@ -1254,6 +1265,17 @@ @misc{Mills2016
   year = {2016}
 }
 
+@article{MolaviDumont2012,
+  author = {Molavi, Behnam and Dumont, Guy A.},
+  doi = {10.1088/0967-3334/33/2/259},
+  journal = {Physiological Measurement},
+  number = {2},
+  pages = {259-270},
+  title = {Wavelet-based motion artifact removal for functional near-infrared spectroscopy},
+  volume = {33},
+  year = {2012}
+}
+
 @article{MolinsEtAl2008,
   author = {Molins A, and Stufflebeam S. M., and Brown E. N., and Hämäläinen M. S.},
   doi = {10.1016/j.neuroimage.2008.05.064},
diff --git a/mne/preprocessing/nirs/__init__.py b/mne/preprocessing/nirs/__init__.py
index 6e35b59dd15..925d51d5f6a 100644
--- a/mne/preprocessing/nirs/__init__.py
+++ b/mne/preprocessing/nirs/__init__.py
@@ -20,3 +20,4 @@
 from ._beer_lambert_law import beer_lambert_law
 from ._scalp_coupling_index import scalp_coupling_index
 from ._tddr import temporal_derivative_distribution_repair, tddr
+from ._wavelet import motion_correct_wavelet, wavelet
diff --git a/mne/preprocessing/nirs/_wavelet.py b/mne/preprocessing/nirs/_wavelet.py
new file mode 100644
index 00000000000..5d50232f20a
--- /dev/null
+++ b/mne/preprocessing/nirs/_wavelet.py
@@ -0,0 +1,248 @@
+# Authors: The MNE-Python contributors.
+# License: BSD-3-Clause
+# Copyright the MNE-Python contributors.
+
+# The core logic for this implementation was adapted from the Cedalion project
+# (https://github.com/ibs-lab/cedalion), which is originally based on Homer3
+# (https://github.com/BUNPC/Homer3).
+
+import numpy as np
+
+from ...io import BaseRaw
+from ...utils import _validate_type, verbose
+from ..nirs import _validate_nirs_info
+
+
+def _pad_to_power_2(signal):
+    """Pad a 1-D signal to the next power of 2.
+
+    Parameters
+    ----------
+    signal : array-like, shape (n,)
+        Input signal.
+
+    Returns
+    -------
+    padded : ndarray, shape (2**k,)
+        Zero-padded signal.
+    original_length : int
+        Length of the original signal before padding.
+    """
+    original_length = len(signal)
+    if original_length <= 1:
+        n = 1
+    else:
+        n = int(np.ceil(np.log2(original_length)))
+    padded_length = 2**n
+    padded = np.zeros(padded_length)
+    padded[:original_length] = signal
+    return padded, original_length
+
+
+def _mad(x):
+    """Compute Median Absolute Deviation."""
+    median = np.median(x)
+    return np.median(np.abs(x - median))
+
+
+def _normalize_signal(signal, wavelet_name, pywt_module):
+    """Normalize signal by its noise level using MAD of detail coefficients.
+
+    Implements Homer3's ``NormalizationNoise`` function
+    :footcite:`HuppertEtAl2009`.
+
+    Parameters
+    ----------
+    signal : ndarray, shape (n,)
+        Input signal (should already be padded to a power of 2).
+    wavelet_name : str
+        Wavelet to use (e.g. ``'db2'``).
+    pywt_module : module
+        The PyWavelets module.
+
+    Returns
+    -------
+    normalized_signal : ndarray, shape (n,)
+        Normalized version of the input signal.
+    norm_coef : float
+        Multiply ``normalized_signal`` by ``1 / norm_coef`` to recover the
+        original scale.
+    """
+    wvlt = pywt_module.Wavelet(wavelet_name)
+    # Homer3 uses qmf(db2, 4) which produces the HIGH-pass decomposition
+    # filter from the scaling (low-pass) filter.  In PyWavelets this is dec_hi.
+    qmf = np.array(wvlt.dec_hi)
+
+    # Circular convolution matching MATLAB's cconv(signal, qmf, len(signal))
+    n = len(signal)
+    c = np.real(np.fft.ifft(np.fft.fft(signal, n) * np.fft.fft(qmf, n)))
+
+    # Downsample by 2 — first-level detail coefficients for noise estimation
+    y_ds = c[::2]
+
+    median_abs_dev = _mad(y_ds)
+
+    if median_abs_dev != 0:
+        norm_coef = 1.0 / (1.4826 * median_abs_dev)
+        normalized_signal = signal * norm_coef
+    else:
+        norm_coef = 1.0
+        normalized_signal = signal.copy()
+
+    return normalized_signal, norm_coef
+
+
+def _process_wavelet_coefficients(coeffs, iqr_factor, signal_length):
+    """Zero out outlier wavelet coefficients using IQR thresholding.
+
+    Parameters
+    ----------
+    coeffs : ndarray, shape (n_padded, n_levels + 1)
+        Stacked wavelet coefficient array (first column = approx, rest =
+        detail per level).
+    iqr_factor : float
+        Interquartile-range multiplier for the outlier threshold.
+    signal_length : int
+        Original (unpadded) signal length used to compute per-block valid
+        lengths.
+
+    Returns
+    -------
+    coeffs : ndarray
+        Coefficient array with outliers zeroed out.
+    """
+    n = coeffs.shape[0]
+    n_levels = coeffs.shape[1] - 1
+
+    for j in range(n_levels):
+        curr_length = signal_length // (2**j) if j > 0 else signal_length
+        n_blocks = 2**j
+        block_length = n // n_blocks
+
+        for b in range(n_blocks):
+            start_idx = b * block_length
+            end_idx = start_idx + block_length
+            coeff_block = coeffs[start_idx:end_idx, j + 1]
+
+            valid_coeffs = coeff_block[:curr_length]
+            q25, q75 = np.percentile(valid_coeffs, [25, 75])
+            iqr_val = q75 - q25
+
+            upper = q75 + iqr_factor * iqr_val
+            lower = q25 - iqr_factor * iqr_val
+
+            coeffs[start_idx:end_idx, j + 1] = np.where(
+                (coeff_block > upper) | (coeff_block < lower),
+                0,
+                coeff_block,
+            )
+
+    return coeffs
+
+
+@verbose
+def motion_correct_wavelet(raw, iqr=1.5, wavelet="db2", level=4, *, verbose=None):
+    """Apply wavelet-based motion correction to fNIRS data.
+
+    Decomposes each channel with a stationary wavelet transform (SWT), zeroes
+    out detail coefficients that are statistical outliers (IQR-based), and
+    reconstructs the corrected signal.  Specialises in spike removal.
+
+    Based on Homer3 v1.80.2 ``hmrR_MotionCorrectWavelet.m``
+    :footcite:`HuppertEtAl2009` and the approach described in
+    :footcite:`MolaviDumont2012`.
+
+    Parameters
+    ----------
+    raw : instance of Raw
+        The raw fNIRS data (optical density or hemoglobin).
+    iqr : float
+        Interquartile-range multiplier used as the outlier threshold for
+        wavelet coefficients.  Larger values remove fewer coefficients.  Set
+        to ``-1`` to disable thresholding entirely.  Default is ``1.5``.
+    wavelet : str
+        Mother wavelet name recognised by PyWavelets (e.g. ``'db2'``).
+        Default is ``'db2'``.
+    level : int
+        Number of decomposition levels for the SWT.  Default is ``4``.
+    %(verbose)s
+
+    Returns
+    -------
+    raw : instance of Raw
+        Data with wavelet motion correction applied (copy).
+
+    Notes
+    -----
+    Requires the ``PyWavelets`` package (``pip install PyWavelets``).
+
+    There is a shorter alias ``mne.preprocessing.nirs.wavelet``
+    that can be used instead of this function.
+
+    References
+    ----------
+    .. footbibliography::
+    """
+    try:
+        import pywt
+    except ImportError as exc:
+        raise ImportError(
+            "PyWavelets is required for wavelet motion correction. "
+            "Install it with: pip install PyWavelets"
+        ) from exc
+
+    _validate_type(raw, BaseRaw, "raw")
+    raw = raw.copy().load_data()
+    picks = _validate_nirs_info(raw.info)
+
+    if not len(picks):
+        raise RuntimeError(
+            "Wavelet motion correction should be run on optical density "
+            "or hemoglobin data."
+        )
+
+    if iqr < 0:
+        return raw
+
+    for pick in picks:
+        signal = raw._data[pick].copy()
+
+        # Pad to power of 2 (required by SWT)
+        padded_signal, original_length = _pad_to_power_2(signal)
+
+        # Remove DC component
+        dc_val = np.mean(padded_signal)
+        padded_signal -= dc_val
+
+        # Normalise by estimated noise level
+        normalized_signal, norm_coef = _normalize_signal(padded_signal, wavelet, pywt)
+
+        # Stationary wavelet transform
+        n_log2 = int(np.log2(len(normalized_signal)))
+        actual_level = min(level, n_log2 - 1)
+        coeffs = pywt.swt(normalized_signal, wavelet, level=actual_level)
+
+        # Stack into a 2-D array: col 0 = approx, cols 1..L = detail levels
+        coeffs_array = np.column_stack([coeffs[0][0]] + [c[1] for c in coeffs])
+
+        # Threshold outlier coefficients
+        coeffs_array = _process_wavelet_coefficients(coeffs_array, iqr, original_length)
+
+        # Rebuild list of (approx, detail) tuples for iswt
+        coeffs_list = [
+            (coeffs_array[:, 0], coeffs_array[:, i])
+            for i in range(1, coeffs_array.shape[1])
+        ]
+
+        # Reconstruct, denormalise, restore DC and trim to original length
+        corrected = pywt.iswt(coeffs_list, wavelet)
+        corrected = corrected / norm_coef
+        corrected = corrected[:original_length] + dc_val
+
+        raw._data[pick] = corrected
+
+    return raw
+
+
+# provide a short alias
+wavelet = motion_correct_wavelet
diff --git a/mne/preprocessing/nirs/tests/test_wavelet.py b/mne/preprocessing/nirs/tests/test_wavelet.py
new file mode 100644
index 00000000000..2a8d52147de
--- /dev/null
+++ b/mne/preprocessing/nirs/tests/test_wavelet.py
@@ -0,0 +1,112 @@
+# Authors: The MNE-Python contributors.
+# License: BSD-3-Clause
+# Copyright the MNE-Python contributors.
+
+import numpy as np
+import pytest
+from numpy.testing import assert_allclose
+
+from mne.datasets import testing
+from mne.datasets.testing import data_path
+from mne.io import read_raw_nirx
+from mne.preprocessing.nirs import (
+    _validate_nirs_info,
+    beer_lambert_law,
+    motion_correct_wavelet,
+    optical_density,
+    wavelet,
+)
+
+fname_nirx_15_2 = (
+    data_path(download=False) / "NIRx" / "nirscout" / "nirx_15_2_recording"
+)
+
+
+@testing.requires_testing_data
+@pytest.mark.parametrize("fname", ([fname_nirx_15_2]))
+def test_motion_correct_wavelet_reduces_spikes_od(fname):
+    """Test wavelet correction attenuates spike artefacts in OD data."""
+    pytest.importorskip("pywt")
+
+    raw = read_raw_nirx(fname)
+    raw_od = optical_density(raw)
+    picks = _validate_nirs_info(raw_od.info)
+
+    sig = raw_od._data[picks[0]]
+    spike_amp = 20 * np.std(np.diff(sig))
+
+    # Inject isolated single-sample spikes
+    n_times = raw_od._data.shape[1]
+    raw_od._data[picks[0], n_times // 4] += spike_amp
+    raw_od._data[picks[0], n_times // 2] -= spike_amp
+
+    spike_before = np.max(np.abs(np.diff(raw_od._data[picks[0]])))
+
+    raw_od_corr = motion_correct_wavelet(raw_od, iqr=1.5)
+
+    spike_after = np.max(np.abs(np.diff(raw_od_corr._data[picks[0]])))
+    assert spike_after < spike_before
+
+
+@testing.requires_testing_data
+@pytest.mark.parametrize("fname", ([fname_nirx_15_2]))
+def test_motion_correct_wavelet_reduces_spikes_hb(fname):
+    """Test wavelet correction works on haemoglobin concentration data."""
+    pytest.importorskip("pywt")
+
+    raw = read_raw_nirx(fname)
+    raw_od = optical_density(raw)
+    raw_hb = beer_lambert_law(raw_od)
+    picks = _validate_nirs_info(raw_hb.info)
+
+    spike_amp = 20 * np.std(np.diff(raw_hb._data[picks[0]]))
+    n_times = raw_hb._data.shape[1]
+    raw_hb._data[picks[0], n_times // 4] += spike_amp
+    raw_hb._data[picks[0], n_times // 2] -= spike_amp
+
+    spike_before = np.max(np.abs(np.diff(raw_hb._data[picks[0]])))
+    raw_hb_corr = motion_correct_wavelet(raw_hb, iqr=1.5)
+    spike_after = np.max(np.abs(np.diff(raw_hb_corr._data[picks[0]])))
+    assert spike_after < spike_before
+
+
+@testing.requires_testing_data
+@pytest.mark.parametrize("fname", ([fname_nirx_15_2]))
+def test_motion_correct_wavelet_negative_iqr_passthrough(fname):
+    """Test iqr < 0 returns data unchanged."""
+    pytest.importorskip("pywt")
+
+    raw = read_raw_nirx(fname)
+    raw_od = optical_density(raw)
+    picks = _validate_nirs_info(raw_od.info)
+    original = raw_od._data[picks[0]].copy()
+
+    raw_od_corr = motion_correct_wavelet(raw_od, iqr=-1)
+    assert_allclose(raw_od_corr._data[picks[0]], original)
+
+
+@testing.requires_testing_data
+@pytest.mark.parametrize("fname", ([fname_nirx_15_2]))
+def test_motion_correct_wavelet_returns_copy(fname):
+    """Test wavelet correction does not modify the input Raw in place."""
+    pytest.importorskip("pywt")
+
+    raw = read_raw_nirx(fname)
+    raw_od = optical_density(raw)
+    picks = _validate_nirs_info(raw_od.info)
+    original = raw_od._data[picks[0]].copy()
+
+    _ = motion_correct_wavelet(raw_od)
+    assert_allclose(raw_od._data[picks[0]], original)
+
+
+def test_wavelet_alias():
+    """Test wavelet is an alias for motion_correct_wavelet."""
+    assert wavelet is motion_correct_wavelet
+
+
+def test_motion_correct_wavelet_wrong_type():
+    """Test passing a non-Raw object raises TypeError."""
+    pytest.importorskip("pywt")
+    with pytest.raises(TypeError):
+        motion_correct_wavelet(np.zeros((10, 100)))