Orthogonal Frequency Division Multiplexing with Offset Quadrature Amplitude Modulation (OFDM/OQAM) signal has high peak-to-average power ratio (PAPR) problem. It not only affects the distortion in High Power Amplifier (HPA) but also results in bit error ratio (BER) degradation. In this paper an improved algorithm based on Clipping and Compressed Sensing (CS) is proposed. The transmitter uses clipping to reduce the PAPR and, the receiver uses an improved inverse model, to reduce the nonlinear distortion introduced by HPA and CS cancels the signal distortion introduced by clipping. Simulation results show that the proposed method not only significantly reduces the PAPR of OFDM/OQAM signals, but also effectively improves the BER performance of the system.