The OFDM signals have a problem of high peak-to-average power ratio (PAPR). Hence, a large transmit-power backoff or amplitude clipping is required. The amplitude clipping causes signal degradation and the BER performance increases. A trade-off between the PAPR reduction and the BER performance is present; the PAPR reduces as the level of clipping reduces, but the BER degrades due to signal distortion. Recently, we proposed OFDM combined with time division multiplexing (OFDM/TDM) to alleviate the high PAPR problem, while achieving better BER performance than OFDM. In this paper, a theoretical bit error rate (BER) analysis of clipped OFDM/TDM system in a frequency-selective fading channel is developed. The average BER performance is evaluated by numerical computation using the derived conditional BER and by computer simulation. It is shown that OFDM/TDM can significantly reduce the amplitude clipping level and the required average signal energy per bit-to-AWGN power spectrum density ratio Eb/N0 for the given BER in comparison to conventional OFDM.