Orthogonal frequency division multiplexing (OFDM) is considered among the most suitable multiplexing technique for realizing high speed wireless communication in the present era. Substantially immune to frequency selective fading, high spectral efficiency and superior data rate made OFDM a preferred and popular modulation technique in 3rd generation and 4th generation mobile communication systems. The high value of peak to average power ratio (PAPR) and inter carrier interference (ICI) are the most severe bottleneck for OFDM applications to deliver high performance in communication system. The present work portraits most of conventional and current PAPR reduction techniques through comparative study assisted by simulative analysis which foretells future research potential in wavelet based OFDM to generate more efficient system. PAPR optimization is achieved through hybridization of wavelet with clipping and companding techniques. Different modulation techniques have been analyzed (through Matlab simulation) over proposed hybrid model to observe the PAPR reduction in OFDM system.