The high peak-to-average power ration (PAPR) values of optical orthogond frequency division multiplexing (OFDM) signal limit the system nonlinear tolerance (NLT). In this paper, a novel method based on Hadamard precoding is proposed to reduce the peak-to-average power ratio in optical direct detection OFDM system. The proposed scheme is successfully applied to an experimental system of optical direct-detection OFDM signal transmission through fiber. In this experiment, the 2.5 Gbit/s binary phas...