Orthogonal Frequency Division Multiplexing (OFDM) has become a popular technique for high bit rate transmission over wireless fading channels. However, an OFDM signal exhibits large peak-to-average power ratio and therefore it is sensitive to nonlinear distortion caused by the high power amplifiers. In this paper a technique called pilot assisted clipping avoidance (PACA) is proposed, which exploits the existence of transmitted pilots to limit the effects of clipping. The performance of the proposed method is assessed for AWGN channels using simulations for a HIPERLAN/2 OFDM system and it is compared with the Decision-Aided Reconstruction (DAR) [1] technique.