Filter-bank multi-carrier (FBMC) with offset-quadrature amplitude modulation (OQAM) is being seriously considered for 5 th generation radio access technology. In this paper, we investigate the problem of peak-to-average power ratio (PAPR) reduction of FBMC-OQAM signals. We propose a novel scheme based on tone reservation (TR) scheme by considering the overlapping nature of FBMC-OQAM symbols. Any TR scheme uses the reserved tones to design a peak cancellation signal that reduces the PAPR. Simulation results indicate that the FBMC-OQAM with the proposed dispersive TR (DTR) scheme is not only efficient in reducing the PAPR but also closely lagging OFDM with classical TR scheme.