Multicarrier Code Division Multiple Access (MC-CDMA) system has the inherent problem of a high Peak to Average Power Ratio (PAPR), whichresultsin nonlinear distortion at the High Power Amplifier (HPA) and consequently reducespower efficiency, performance degradation at the receiver. High PAPR causeslowers battery life,andrequires HPAs. HPAs result in increased cost, reduced battery life, increased co-channel interference and Inter Symbol Interference (ISI). This paper analyzes a newidea that is combinationofexponential companding transform and clipping conceptto obtain a new Modified Exponential Companding with Clipping Transform(MECCT) technique for MC-CDMA PAPR reduction. This method evaluates performance analysis of MC-CDMA while consideringlinearcompanding and exponentialcompanding (nonlinear) with the Additive White Gaussian Noise (AWGN) channelandissimulated using MATLAB. Thesimulation results show that theproposed algorithm reduces the PAPR by 2.0 dB,andareable to improve Bit Error Rate (BER),reduced Power Spectral density(PSD), and improvement in spectral bandwidth.