A hybrid algorithm, which is based on discrete cosine transform precoding and improved μ-law compression technique, has thus been proposed to suppress the peak to average power ratio of a flipped orthogonal frequency division multiplexing visible light communication system. The proposed hybrid algorithm first performs precoding operation on the frequency domain signal so as to reduce the signal peak value. Then, the encoded time-domain signal is compressed and spread based on average power for a further reduction of the signal amplitude and achieve the goal of suppressing signal PAPR. The simulation results show that the improved hybrid algorithm is characterized with a better suppression effect on signal peak values than traditional hybrid algorithms. With a value of 10-3 in the complementary cumulative distribution function and the pulse amplitude modulation, the PAPR of the improved algorithm decreases by 1.09 dB compared with the algorithm using precoding and μ-law companding.