Objectives: This paper proposes logarithmic companding technique to improve PAPR and BER performance of conventional Single Carrier Frequency Division Multiple Access (SC-FDMA) system. Methods/Analysis: The lower signal envelope fluctuations in SC-FDMA signal results in low peak to average power ratio, in contrast to that of OFDMA. But still, there is a need to minimize PAPR in SC-FDMA systems. Although there are many techniques to minimize PAPR in SC-FDMA systems they are highly complex or need side information to be transmitted. This paper proposes a companding technique based on a logarithmic function which provides better PAPR reduction when compared to μ law companding. Findings: Simulation results demonstrate that proposed method provides better PAPR and BER performance when compared to conventional SC- FDMA system and μ law companding.