A thorough review of acoustic and electromagnetic wavelets is given, including a first account of recent progress in understanding their sources. These physical wavelets, introduced in 1994, are families of 'small' solutions of the wave and Maxwell equations generated from a single member by group operations including translations, Lorentz transformations, and scaling. They are parametrized by complex spacetime points z = x − iy, where x gives the centre of their region of origin and y gives the extension and orientation of this region in spacetime. They are thus pulsed beams whose origin, direction and focus are all governed by z and which give, by superposition, 'wavelet representations' of acoustic and electromagnetic waves. Recently this idea has been developed substantially by the rigorous understanding of the source distributions required to launch and absorb the wavelets, defined as extended delta functions. The unexpected simplicity and complex structure of the sources in the Fourier domain suggests their potential use in the construction of fast algorithms for the analysis and synthesis of acoustic and electromagnetic waves. The review begins with a brief account of the physical wavelets associated with massive (Klein–Gordon and Dirac) fields, which are relativistic coherent states.