In this paper, a new adaptive PAPR reduction scheme is proposed by which the PAPR of the OFDM signal can be reduced to keep the value lower than a predefined threshold level. A conventional companding is used as a technique to reduce the PAPR of the OFDM signal. If the PAPR of the OFDM signal is higher than any predefined level, one or more times companding operations are performed until the PAPR becomes lower than that level. On top of that, no companding is applied if the signal's PAPR is lower than the predefined level. However, there is a trade-off between the improvement of the PAPR and BER which may be optimized based on any specific application requirements.