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The block coding scheme for OFDM, which is combining Golay complementary sequence with Reed-Muller code (GCRM) that limits PAPR up to 3 dB with error-correcting capability, has been introduced recently [J. A. Davis et al. (1999)]. However, the coding gain of GCRM cannot overcome ICI caused by frequency error in OFDM. In this paper, a new combined scheme of ICI self-cancellation [Y. Zhao et al. (2001)] [Y. Fu et al. (2002)] and GCRM code is proposed. This scheme is analyzed to show that it limits PAPR up to 6 dB and can compensate the nonlinear distortion by TWTA. It is also verified that for the low back-off value of TWTA, our scheme shows better performance than GCRM.