## 1 Introduction  
Overlapped Time Domain Multiplexing (OvTDM) [1, 2] is an emerging modulation technique designed for high-rate transmission, rooted in superposition coded modulation (SCM) [3]. Positioned as a potential waveform for 6G wireless communications, OvTDM holds promise in specific scenarios [3, 4, 5]. Meanwhile, its application in physical layer security has been extensively explored in the current literature [6, 7, 8]. Despite its advantages in maximizing channel capacity sharing, OvTDM grapples with a notable peak-to-average power ratio (PAPR) problem, stemming from the multi-layer superposition in the modulation process.  
To address this challenge, existing PAPR reduction techniques can be carefully considered which are broadly classified into two groups [9, 10]. Specifically, the first group introduces redundancy to diminish the signal's PAPR, such as partial transmit sequence (PTS) and coding [11, 12]. However, this approach contradicts the high spectral efficiency pursuit of OvTDM. Meanwhile, the second group avoids additional redundancy, exemplified by the clipping technique, which introduces extra interference to the signal [13, 14]. Unfortunately, when combined with the second group of techniques such as clipping, OvTDM signals will suffer from nonlinear distortion, leading to the considerable degradation of transmission performance.  
To counter the distortion induced by clipping, researchers have explored a class of iterative recovery methods that achieve the estimation and partial cancellation of clipping distortion at the receiver [15, 16, 17, 18, 19, 20, 21, 22]. Specifically, the common principle underlying these iterative detection schemes is to continuously and effectively mitigate clipping noise through iterative detection, thus obtaining a more accurate estimation of the original signal.  
Therefore, the iterative detection process involves the straightforward reconstruction of the clipping noise as well as employing a soft iterative compensation approach. In general, the existing literature characterizes clipping noise in various ways, each offering different performance enhancements and implementation complexities [23; 24].  
In this paper, the primary focus is on addressing the high PAPR challenge within the OvTDM system. To tackle this issue effectively, based on the basic framework of iterative detection, we propose a soft iterative compensation scheme carefully designed under a well-defined mathematical model characterizing the inherent clipping noise in such system. These developed compensation strategies are capable of systematically reducing the PAPR of OvTDM signals, thereby enhancing the overall performance and efficiency of the OvTDM system.  
The remainder of the paper is organized as follows: Section 2 provides a description of the system and discusses the challenges posed by clipping distortion. Section 3 details the soft iterative detection under three different clipping noise models while describing the iterative detection of directly reconstructed clipping noise. Simulation results and comparative analysis are presented in Section 4. Finally, Section 5 concludes the paper with a summary of the findings and directions for future research.