This paper investigates performance degradation of conventional Orthogonal Frequency Division Multiplexing (OFDM) and Discrete Wavelet Transform based OFDM (DWT-OFDM) systems when the signals are passed through a nonlinear High Power Amplifier (HPA) and fading channel. In the case of DWT-OFDM, several wavelets such as Daubechies, Symlet and Biorthogonal are evaluated. Simulation results in terms of PAPR, PSD, and Bit Error Rate (BER) show that DWT-OFDM is more robust against interference and multipath effects compared to DFT-OFDM, and increasing the length of the basis function improves BER and PAPR.