Many attempts have been made to effectively improve a prosthetic system controlled by the classification of surface electromyographic (SEMG) signals. Recently, the development of methodologies to extract the effective features still remains a primary challenge. Previous studies have demonstrated that the SEMG signals have nonlinear characteristics. In this study, by combining the nonlinear time series analysis and the time-frequency domain methods, we proposed the wavelet-based correlation dimension method to extract the effective features of SEMG signals. The SEMG signals were firstly analyzed by the wavelet transform and the correlation dimension was calculated to obtain the features of the SEMG signals. Then, these features were used as the input vectors of a Gustafson-Kessel clustering classifier to discriminate four types of forearm movements. Our results showed that there are four separate clusters corresponding to different forearm movements at the third resolution level and the resulting classification accuracy was 100%, when two channels of SEMG signals were used. This indicates that the proposed approach can provide important insight into the nonlinear characteristics and the time-frequency domain features of SEMG signals and is suitable for classifying different types of forearm movements. By comparing with other existing methods, the proposed method exhibited more robustness and higher classification accuracy.