A signal scrambling method is provided for peak-to-average power ratio (PAPR) reduction of STBC MIMO-OFDM signals in a MIMO-OFDM system having Y transmit antenna. In general terms the OFDM sequence of symbols in said signal for each transmit antenna is divided into M sub-blocks of equal size and subclockwise rotation and inversions are performed across all transmit antennas to generate [2Y]M permuted sequence sets from the original OFDM sequence. Based on a predetermined criteria, there is then selected from the resulting sets of OFDM sequences the one with the best PAPR properties for transmission. The predetermined criteria preferably comprises identifying maximums for all [2Y]M sequence sets, by calculating the largest PAPR value of Y sequences in each set and selecting a set with the minimum maximum for transmission.