A communication system, comprising: a communication signal source providing a band limited communication signal wherein said signal source comprises a modulation filter for limiting the bandwidth of the communication signal; and a peak reduction unit coupled to receive said band limited communication signal and provide a band limited peak reduced output signal, the peak reduction unit comprising a circuit for providing a peak reduction correction waveform corresponding to the difference between the communication signal and the communication signal hard limited to a limit value as determined at each sample, a correction filter for filtering the peak reduction correction waveform and providing a band limited peak reduction correction signal corresponding to the band limits of the communication signal, wherein said correction filter is set to match the filter characteristics of said modulation filter, and a combiner for combining said band limited communication signal and said band limited peak reduction correction signal to provide a band limited peak reduced output signal; wherein said peak reduction unit further comprises: a first signal path receiving as input signal said band limited communication signal and including a delay circuit for delaying the input signal; a second parallel signal path receiving said band limited input signal and including a peak reduction calculation unit for calculating a peak reduction correction and said correction filter providing a filtering operation on the peak reduction correction; wherein the combiner is adapted to combine the filtered peak reduction correction and delayed input signal and providing peak adjusted output signals, wherein said second signal path further comprises a gain circuit for adjusting the magnitude of the correction by a gain value (g) that depends on the band limited communication signal, the limit value and the correction filter design. a communication signal source providing a band limited communication signal wherein said signal source comprises a modulation filter for limiting the bandwidth of the communication signal; and a peak reduction unit coupled to receive said band limited communication signal and provide a band limited peak reduced output signal, the peak reduction unit comprising a circuit for providing a peak reduction correction waveform corresponding to the difference between the communication signal and the communication signal hard limited to a limit value as determined at each sample, a correction filter for filtering the peak reduction correction waveform and providing a band limited peak reduction correction signal corresponding to the band limits of the communication signal, wherein said correction filter is set to match the filter characteristics of said modulation filter, and a combiner for combining said band limited communication signal and said band limited peak reduction correction signal to provide a band limited peak reduced output signal; wherein said peak reduction unit further comprises: a first signal path receiving as input signal said band limited communication signal and including a delay circuit for delaying the input signal; a second parallel signal path receiving said band limited input signal and including a peak reduction calculation unit for calculating a peak reduction correction and said correction filter providing a filtering operation on the peak reduction correction; wherein the combiner is adapted to combine the filtered peak reduction correction and delayed input signal and providing peak adjusted output signals, wherein said second signal path further comprises a gain circuit for adjusting the magnitude of the correction by a gain value (g) that depends on the band limited communication signal, the limit value and the correction filter design. a first signal path receiving as input signal said band limited communication signal and including a delay circuit for delaying the input signal; a second parallel signal path receiving said band limited input signal and including a peak reduction calculation unit for calculating a peak reduction correction and said correction filter providing a filtering operation on the peak reduction correction; wherein the combiner is adapted to combine the filtered peak reduction correction and delayed input signal and providing peak adjusted output signals, wherein said second signal path further comprises a gain circuit for adjusting the magnitude of the correction by a gain value (g) that depends on the band limited communication signal, the limit value and the correction filter design.