In wireless communication, Orthogonal Frequency Division Multiplexing (OFDM) is a promising scheme against the multipath fading channel .However, due multi-carrier transmission , OFDM system has a major draw back of Peak-to-Average Power Ratio (PAPR) problem that affect the efficiency of HPA in the transmitter side. In the proposed scheme, a new technique is discussed for reducing PAPR in the OFDM system by using Discrete Cosine Transform (DCT) and adjacent sub carriers grouping with companding technique.A computer simulation is used to evaluate the performance of the proposed PAPR scheme.