Based on a brief analysis of the response of different settings in FAEM and a detailed description of the Occam algorithm, the authors successfully applied the Occam method to the processing of frequency-domain AEM data. As the algorithm is concerned not only with the rms misfit, but also with the smoothness of the model, it can steadily converge with wide initial values. The method was used in some theoretical models and FAEM field data, and the result is satisfactory and helpful to the interpretation of FAEM data.