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In a visible light communication (VLC) system, the nonlinear characteristic of the light emitting diode (LED) in transmitter is a limiting factor of system performance. Modern modulation signals with large peak-to-power-ratio (PAPR) suffers uneven distortion. The nonlinear response directly impacts the intensity modulation and direct detection VLC system with pulse-amplitude modulation (PAM). The amplitude of the PAM signal is distorted unevenly and large signal is vulnerable to noise. Orthogonal linear transformations, such as discrete multi-tone (DMT) modulation, can spread the nonlinear effects evenly to each data symbol, thus perform better than PAM signals. In this paper, we provide theoretical analysis on the benefit of DMT modulation in nonlinear VLC system. We show that the DMT modulation is a better choice than the PAM modulation for the VLC system as the DMT modulation is more robust against …