For many years, different methods were tried to reduce the PAPR of OFDM and are broadly classified as distortion or distortionless schemes, each of which has some merits and demerits. But the inherent frequency diversity benefits of a transmitted OFDM signal on multipath fading channels can only be exploited by use of channel coding. Hence in this paper, PAPR reduction was tried with coding method to exploit the advantage of OFDM systems. Since cyclic codes have been proved earlier as the suitable coding method to reduce PAPR, binary cyclic Goppa codes using BPSK carriers have been considered. Simulations show that the proposed scheme shows good PAPR reduction compared to uncoded OFDM and with the possibility to be extended with error detection and correction capability it can be used as a PAPR reduction method and can be experimented over several modulation techniques. The process is illustrated by means of an example, and it is shown that there is an improvement possible for a (16,8,5) and (12,4,5) Goppa coded symbols compared to the uncoded ones.