The advantages of homomorphic deconvolution are that it does not require the assumptions of minimum-phase wavelet and of a white random reflection coefficient series. Disadvantages of the method which have been recognized in the public domain are difficulties in unwrapping the phase, in dealing with band-limited signals, and in handling mixed-phase reflection coefficient series. These difficulties may be respectively overcome by using an "adaptive numerical integration algorithm" (Tribolet, 1977), frequency transformations (Tribolet, 1979), and exponential weighting of the signal (Tribolet, 1979). There seems to have been some understanding in the literature and among exploration researchers that additive noise would affect the performance of homomorphic deconvolution. However, to the best of our knowledge there have not appeared in the literature any analytical expressions or experiments conclusively showing how additive noise affects homomorphic deconvolution. Analytic and experimental analyses demonstrated that additive noise plays a critical role in homomorphic deconvolution such that homomorphic deconvolution is unreliable whenever the spectral amplitudes of the signal are very small over certain frequency bands and even a small amount of noise is present. This unreliability of the method overshadows its advantages.