A system and method for signal peak reduction in a spread spectrum communication system of the type including a filter for limiting signal bandwidth of symbols transmitted from the system. A signal peak reduction unit is provided before the filter that includes a filter predictor that predicts the effect of the filter on input symbols by using filter coefficient values corresponding to the filter impulse response function. Input symbols that are predicted to cause the output signal to exceed a predetermined peak limit value are adjusted. Several examples of suitable algorithms for calculating the necessary peak reduction to be applied to the input symbols are disclosed. The peak reduction unit provides adjusted symbols to the filter for processing and communication system output.