Artificial neural network (ANN) has application in communication engineering in diverse areas such as channel equalization, channel modeling, error control code because of its capability of nonlinear processing, adaptability, and parallel processing. On the other hand, wavelet transform (WT) with both the time and the frequency resolution provides the exact representation of signal in both domains. Applying these signal processing tools for channel compensation and noise reduction can provide an enhanced performance compared to the traditional tools. In this paper, the slot error rate (SER) performance of digital pulse interval modulation (DPIM) in diffuse indoor optical WIRELESS (OW) LINKS subjected to the artificial light interference (ALI) is reported with new receiver structure based on the discrete WT (DWT) and ANN. Simulation results show that the DWT-ANN based receiver is very effective in reducing the effect of multipath induced inter-symbol interference (ISI) and ALI.