Orthogonal Frequency Division Multiplexing (OFDM) is a popular modulation/ multiplexing scheme that offers high data rates, but it frequently suffers from high Peak to Average Power Ratio (PAPR), which eventually increases the complexity of the Analog to Digital and Digital to Analog converters and reduces high power amplifier (RF) efficiency. Companding is the popular PAPR reduction technique, which increases the Bit Error Rate (BER). In this project, a novel piecewise linear companding scheme is presented, which reduces the PAPR by clipping the amplitudes over the companded peak amplitude and compensates the power by linearly transforming the signal amplitudes that are close to the companded peak amplitude. The simulation result shows that the techniques presented here provide better spectral efficiency and better BER performance while mitigating the companding distortion.