Orthogonal frequency-division multiplexing (OFDM) serves as a promising candidate for the upcoming high rate and high-speed wireless communication. Increased peak-to-average power ratio (PAPR) of the transferred signal is the foremost downside in the OFDM model. This paper presents a new hybrid scheme which combines the partial transmit sequence, and clipping is proposed for the Hadamard precoded OFDM model. The effectiveness of new PAPR reduction scheme for the precoded OFDM system is analyzed with the help of simulation results. The proposed scheme results in reduced PAPR of 4.9 dB in the case of Hadamard-OFDM and 5.4 dB with the standard OFDM. © 2021, Springer Nature Singapore Pte Ltd.