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Due to the increase in demand for high data rates in mobile communication, orthogonal frequency division multiplexing (OFDM) system is employed in many applications. It efficiently overcomes the effect of Inter-symbol Interference caused due to the fading of the channel, but Peak to Average Power Ratio (PAPR) is unitary of the disadvantages in OFDM System. In the stage-I, the OFDM system is designed with different modulation schemes like QAM-16, BPSK, and QPSK. In the latter stage, we work on the reduction of PAPR by using a clipping technique and we establish a significant reduction in PAPR as compared to the conventional clipping technique.