This paper presents a new hybrid PAPR reduction technique for the OFDM signal, which combines a multiple symbol representations method with a signal clipping method. The clipping method is a nonlinear PAPR reduction scheme, where the amplitude of the signal is limited to a given threshold. Considering the fact that the signal must be interpolated before A/D conversion, a variety of clipping methods has been proposed. Some methods suggest the clipping before interpolation, having the disadvantage of the peaks re-growth. Other methods contributed that the clipping after interpolation, having the disadvantage of out-of-band power production. In order to overcome this problem different filtering techniques have been proposed. Filtering can also cause peak re-growth, but less than the clipping before interpolation. Another clipping technique supposes that only subcarriers having the highest phase difference between the original signal and its clipped variant will be changed. This is the case of the partial clipping method. To further reduce the PAPR, the dynamic of the clipped signal can be compressed. Linear methods like partial transmit sequence or selective mapping has been proposed for the reduction of PAPR as well. Another PAPR reduction method is the tone reservation. It uses tones on which no data is sent to reduce the transmitted signal peaks. Derivatives of this method with lower computation complexity and improved performance have been proposed: One-Tone One-Peak and one by-one iteration. A similar PAPR reduction method is the multiple symbol representations, where alternative signalling points are used to represent one symbol. The simulation results highlight the advantages of the proposed PAPR reduction method. / The proposed technique namely Adaptive Active Constellation Extension (Adaptive ACE) Algorithm reduced the high Peak-to-Average Power Ratio (PAPR) of the Orthogonal Frequency Division Multiplexing (OFDM) systems. The Peak-to-Average Power Ratio (PAPR) is equal to 6.8 dB for the target clipping ratios of 4 dB, 2 dB and 0 dB by using Adaptive Active Constellation Extension (Adaptive ACE) Algorithm. Thus, the minimum PAPR can be achieved for low target clipping ratios. The Signal-to-Noise Ratio (SNR) of the Orthogonal Frequency Division Multiplexing (OFDM) signal obtained by the Adaptive Active Constellation Extension (Adaptive ACE) algorithm is equal to 1.2 dB at a Bit Error Rate (BER) of 10-0..4 for different constellation orders like 4-Quadrature Amplitude Modulation (4-QAM), 16-Quadrature Amplitude Modulation (16-QAM) and 64-Quadrature Amplitude Modulation (16-QAM). Here, the Bit Error Rate of 10-0.4 or 0.398, that means a total of 398-bits are in error when 1000-bits are transmitted via a communication channel or approximately 4-bits are in error when 10-bits are transmitted via a communication channel, which is high when compared to that of the original Orthogonal Frequency Division Multiplexing (OFDM) signal. The other problems faced by the Adaptive Active Constellation Extension (Adaptive ACE) algorithm are Out-of-Band Interference (OBI) and peak regrowth. Here, the Out-of-Band Interference (OBI) is a form of noise or an unwanted signal, which is caused when the original Orthogonal Frequency Division Multiplexing (OFDM) signal is clipped for reducing the peak signals which are outside of the predetermined area and the peak regrowth is obtained after filtering the clipped signal. The peak regrowth results to, increase in the computational time and computational complexity. In this paper, we have proposed a PAPR reduction scheme to improve the bit error rate performance by applying companding transform technique. Hence, 1-1.5 dB reduction in PAPR with this Non-companding technique is achieved. In Future, We can accept to implement the same on Rician and Rayleigh channels. / Clement Ranjith Anthikkad (E-mail: clement.ranjith@gmail.com / clan11@bth.se) & Irfan Ahmed Baig (E-mail: baig.irfanahmed@gmail.com / ir-a11@bth.se )