Uplink multicarrier localized nonorthogonal multiple access (MC‐LNOMA) is a variant of hybrid nonorthogonal multiple access, where subcarrier mapping is performed in localized mode. MC‐LNOMA is one of the most prominent emerging schemes and likely to be employed in the forthcoming fifth‐generation cellular networks due to its massive connectivity, spectral efficiency, better cell coverage capability, and higher data rate. It may employ orthogonal frequency‐division multiple access due to the technical ripeness. However, schemes based on orthogonal frequency‐division multiple access all suffer from the high peak‐to‐average power ratio problem. Therefore, in this paper, a new finite impulse response filter–based discrete cosine transform–precoded uplink MC‐LNOMA scheme is presented for peak‐to‐average power ratio reduction. MATLAB simulations demonstrate the performance supremacy of the proposed scheme compared to contemporary schemes such as discrete cosine transform–precoded uplink MC‐LNOMA and nonprecoded uplink MC‐LNOMA.