A method for automatically threading wire in a wire bonding apparatus includes the steps of extending a wire tail of a wire from a wire spool, locating the wire tail in a wire locating device and positioning the wire tail at a straightening location of the wire locating device. The wire tail is straightened at the straightening location with a wire manipulating device and then conveyed to a threading location. With a wire threading device, the straightened wire tail is received at the threading location and is threaded through a capillary of the wire bonding apparatus.