The fourth generation mobile communication system is a high-speed broadband wireless communication system, it needs MIMO and OFDM technology which have high spectral efficiency and suitable for a multi-path fading channel. Because the MIMO-OFDM system is still an multi-carrier modulation system, the main drawback is the high PAPR value. This paper proposed an improved algorithm based on optimized PTS to reduce PAPR in STBC MIMO-OFDM system. The simulation results show that the improved algorithm can effectively reduce the PAPR value and do not increase the amount of computation in STBC MIMO-OFDM system.