Due to its attractive features, the utilization of fiber optics as a transmission medium with various applications is increased rapidly. In despite, when signals are transmitted with high data rates through ultra-long haul distances of single-mode fiber (SMF), which is usually used at wide area networks (WANs), the nonlinear dispersion of signals is raised. This phenomenon leads digital pulses to interfere with the adjacent pulses. In this paper, an optical orthogonal frequency division multiplexing based T-transform (T-OOFDM) system is proposed to mitigate the effect of fiber dispersion significantly and reduce the peak-to-average power ratio (PAPR) of the transmitted signal when compared with conventional optical OFDM (OOFDM) system. Simulations results confirmed by the analytical analysis demonstrated that the detrimental effects arising from fiber channel dispersion on the subcarrier orthogonality of the transmitted signals can be efficiently minimized by using T-OOFDM system. Moreover, the peak of the transmitted signal will be considerably reduced whilst preserving the average power of signals.