A seismic source pulse, when transmitted through the earth, gets reflected from everyinterface across which there is an acoustic impedance contrast. Such seismic data areacquired during geophysical surveys. The methods to process these data are based onstatistical techniques. One of the ways of extracting useful signal from thecontaminated seismic reflection is through deconvolution. In this dissertation work the scope of deconvolution methods which help in distinguishing the reflectionswhich are otherwise lost in the reverberatory energy will be dealt with. New optimumdigital filters with a wide range of applications will be designed for this purpose.The stability of the filter is obtained by incorporating the prewhitening parameter inthe algorithm. The block toeplitz matrix consisting of the auto and cross correlationfor the two signals under consideration. The block toeplitz matrix associated with thedigital filter has been stabilized by a process of normalization and then incorporatingthe prewhitening parameter in the algorithm. The prewhitening parameter has beenselected using the criterion of arithmetic mean. The effect of the length of the filter onthe condition number is studied and the stability versus accuracy of the estimatedfilter is bought out. The best optimum filter length is obtained for which the solutionis both stable and accurate.