Model order reduction plays a key role in determining VLSI system performance and the optimization of interconnects. In this paper, we develop an accurate and provably passive method for model order reduction using adaptive wavelet-based frequency selective projection. The wavelet-based approach provides an automated means to generate low order models that are accurate in a particular range of frequencies. The results indicate that our approach provides more accurate reduced order models than the spectral zero method with uniform interpolation points and the zero-shift and multi-shift Block Arnoldi-based techniques.