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One of the efficient ways to reduce the peak-to-average power ratio in multi-carrier system is clipping, but it may cause the outspread of frequency spectrum, and lead to clipping noise as well as nonlinear distortion, and at the same time it can increase the bit error ratio in multi-carrier system. In this paper, a nonlinear and non-inertial system model has been constructed, which is described the statistic characteristics of clipping process, and has become the fundamental framework in the following analysis. In the model, the statistic characteristics of clipping noise and distortion are looked as Gaussian distribution. On the other hand, an improved algorithm for reducing the clipping noise and distortion has been given in this paper. The proposed algorithm used discrimination and iteration procedure to reconstruct clipping noise and distortion, and then minished their adverse effect by counteractive operation. Simulation results showed that clipping reconstructing iterative algorithm could not obviously increase peak-to-average power ratio of clipping system, but it could effectively reduce the influence of nonlinear distortion and improve the BER performance under various amplitude thresholds and different iteration times.