With the increasing demand for precise condition monitoring and diagnosis of gas-insulated switchgears (GIS), it has become a challenge to improve the detection sensitivity of partial discharge (PD) induced in the GIS spacer. This paper deals with the elimination of the capacitive component from the phase resolved partial discharge (PRPD) signal generated in GIS spacer based on the discrete wavelet transform. Three types of typical insulation defects were simulated using PD cells. The single PD pulses were detected and were further used to determine the optimal mother wavelet. As a result, the bior6.8 was selected to decompose the PD signal into 8 levels and the signal energy at each level was calculated. The decomposed components related with capacitive disturbance were discarded whereas those associated with PD were de-noised by a threshold and a thresholding function. Finally, the PRPD signals were reconstructed using the de-noised components.