Direction of Arrival (DOA) estimation is the important stage in a smart antenna that estimates the direction of impinging signals on an antenna array, and the most high-resolution DOA estimation subspace algorithm is Multiple Signal Classification (MUSIC). MUSIC algorithm is best suited for estimating the non-coherent signals due to its accuracy and a high degree of resolution. However, its performance degrades in presence of multipath propagation that has coherent and closely spaced signals and at low Signal to Noise Ratio. Many researchers proposed modifications to the MUSIC algorithm to improve its performance even under multipath, coherent and closely spaced signal environment. This paper focuses on investigating a proposed preprocessing technique, referred to as CW-ICA MUSIC that improves the performance of the MUSIC algorithm under above scenario even at low SNR. Simulation results confirm that the proposed preprocessing technique based on Dual Tree Complex Wavelet Transform (DTCWT) and Independent Component Analysis (ICA) outperforms the reported modified MUSIC algorithms such as Wavelet-MUSIC, and SS-MUSIC.