This project proposes an adaptive ace algorithm for the purpose of effectively reducing PAPR in OFDM systems. For high speed communication systems, orthogonal frequency division multiplexing (OFDM) has been most widely utilized modulation technology. It offers low computational cost and good spectrum efficiency. The fundamental problem with OFDM is the high Peak to Average Power Ratio (PAPR) that occurs from adding up many sinusoidal signals. Therefore, the peak to average power ratio (PAPR) of OFDM system is decreased using an efficient Peak Clipping Technique. A required degree of PAPR has been reached by introducing varied numbers of Subcarriers N, Mapping Order M, up sampling factor k, Number of all samples n and Phase Offset P. In addition, by using the suggested technique, a better balance between BER and SNR has been preserved. MATLAB is used to implement this project.