Low-quality video caused by compression artifacts, noise, and loss of detail remains a significant challenge in video processing, affecting applications in streaming, surveillance, and medical imaging. Existing enhancement techniques often struggle with excessive noise amplification or high computational complexity, making them inefficient for real-time applications. This study proposes an improved video enhancement method using Discrete Wavelet Transform (DWT) with optimized coefficient factor and gamma adjustment. DWT is a mathematical approach that decomposes video frames into frequency subbands, enabling selective enhancement of important details. To analyze the impact of different wavelets, this study evaluates Coif5, db1, sym4, and sym8 wavelets. The sym8 wavelet, known for its high symmetry and ability to minimize artifacts, achieves the best results in preserving fine details and structural integrity. The coefficient factor is dynamically adjusted to sharpen details while preventing noise amplification, and gamma adjustment is applied to optimize brightness and contrast. The proposed method was evaluated using Mean Squared Error (MSE), Peak Signal-to-Noise Ratio (PSNR), and Structural Similarity Index (SSIM). Experimental results show that sym8 wavelet with gamma 0.7 and coefficient factor 0.3 provides the best balance, achieving an MSE of 0.062, a PSNR of 12.050 dB, and an SSIM of 0.674, outperforming Coif5, db1, and sym4 wavelets. The results indicate that wavelet selection significantly impacts video enhancement performance, with sym8 providing superior contrast enhancement and noise suppression. This study contributes to real-time video processing and AI-based applications, ensuring enhanced visual quality with minimal computational overhead.