Targeting at the poor ability of the wavelet transform domain digital watermarking algorithm against geometric attack, a wavelet domain watermarking algorithm based on matching of SIFT feature points was proposed. The rotation, scaling and translation invariant features of feature points extraction and matching by SIFT algorithm were combined with the DWT watermarking algorithm, and the parameter estimation and correction of watermarked images after geometric attack were realized according to the scale characteristics and coordinate relationship of SIFT feature points. The simulation results showed that after a series of rotation, zoom, translation and composite attacks, the NC values of extracted watermark using this watermark algorithm were all above 0.8394, demonstrating the feasibility of the algorithm. Especially, this algorithm was superior to other similar or related algorithms in the resistance to rotation attacks. In conclusion, this algorithm was robust to the three kinds of geometric attacks including rotation, zoom and translation.