Orthogonal Frequency Division Multiplexing is a technique for achieving high data bit transmission but high Peak to Average Power Ratio at the transmitting end. The proposed algorithm combines the Space Frequency Block coding and Partial Transmit Sequence to reduce the PAPR to a minimum rate. Quadrature Amplitude modulation such as 256, 128, and 64 used to reduce PAPR. The proposed system supports multiple users as well as reduces the problem of PAPR at the maximum extent. Interleaving reduces the consumption of higher bandwidth and pre-coder avoids loss of data due to overlapping of signals. The proposed techniques proves higher spectrum efficiency, constant signal power for each of the users and better PAPR reduction are achieved by comparing with the existing systems such as SLM and PTS. © 2006-2016 Asian Research Publishing Network (ARPN).