A method and apparatus for reducing a ratio of peak power to average power of multi-carrier signals are provided. The apparatus and method include the steps of: after modulating the multi-carrier signals respectively, summing the modulated signals to form a combination signal; computing and searching on at least one of the carriers based on the combination signal to obtain the resultant compensation signal; and summing the resultant compensation signal with the combination signal from the combiner to produce a compensated signal. The method and apparatus effectively reduce the ratio of peak power to average power of the multi-carrier signals.