SummaryIn wireless telecommunication, one of the modulation approaches used is the orthogonal frequency division multiplexing (OFDM). Moreover, the high peak‐to‐average power ratio (PAPR) is the one notorious demerit in OFDM systems. Hence, the high power amplifier (HPA) is used in its linear region. Otherwise, the bit error rate (BER) will be increased. Several approaches are proposed in the wireless communications for reducing the PAPR issue. In this paper, we propose a hybrid Discrete Hartley Matrix Transform (DHMT) precoding using both selected mapping (SLM) and partial transmit sequence (PTS) PAPR reduction strategies. For the multicarrier modulation process, instead of Inverse Fast Fourier transform (IFFT) operation, the DHMT operation is used because of its low computational complexity. Based on multi‐chaotic, the time‐frequency domain encryption (TFDE) approach is adopted for physical layer security to confirm the security in data transmission. For enhancing the physical layer security, the proposed encryption system generates chaotic sequences based on Logistic maps and Lozi in the frequency and time domains together. In this study, the implementation of the DHMT‐based OFDM system is processed to reduce the maximum PAPR. Implementation is performed on the MATLAB platform, and the performances are calculated using complementary cumulative distribution function (CCDF), BER regards to signal‐to‐noise ratio (SNR), and the outputs are compared based on the computation time. However, compared with the existing models, the proposed model produced better PAPR minimization regarding SNR.