In this work, an attempt has been made to classify arousal and valence states of emotion using time-domain features extracted from the Wavelet Packet Transform. For this, Electroencephalogram (EEG) signals from the publicly available DEAP database are considered. EEG signals are first decomposed using wavelet packet decomposition into θ, α, β, and γbands. Then featural, namely band energy, sub-band energy ratio, root mean of energy, and information entropy of band energy is estimated. These features are fed into various machine learning classifiers such as support vector machines, linear discriminant analysis, K-nearest neighbor, and random forest. Results indicate that features extracted from wavelet packet transform can predict the arousal and valence emotional states. It is also seen that Support Vector Machines perform the best for both arousal (f-m = 75.68%) and valence(f-m=57.53%). This method can be used for the recognition of emotional states for various clinical purposes in emotion-related psychological disorders like major depressive disorder. © 2022 European Federation for Medical Informatics (EFMI) and IOS Press.