In order to solve the problems of high peak-to-average ratio of traditional orthogonal frequency division multiplexing technology， complex-valued signal structure cannot be directly applied to intensity modulation direct detection system， Lifting Wavelet Transform （LWT） is applied to Orthogonal Frequency Division Multiplexing （OFDM）. The orthogonal wavelet basis is selected as the subcarrier. By predicting and updating the signal， the high and low frequencies of the signal are separated. Combined with the multiple reflection channel model of Visible Light Communication （VLC）， the DCO-LWT-OFDM system model was established， and the iterative decomposition and renewal reconstruction formulas of LWT-OFDM signals were deduced. The performance of the DCO-LWT-OFDM system was simulated and verified by experiments. Simulation results show that in a 4 m×4 m×3 m indoor space， when the bit error rate of the system is 10^-4， the performance of the DCO-LWT-OFDM system is about 5 dB higher than that of the DCO-FFT-OFDM system， and the overall efficiency is improved by 70%. When the system peak-to-average ratio is 10 dB， the value of complementary cumulative distribution function of DCO-FFT-OFDM system is close to 10^-1， and the value of complementary cumulative distribution function of DCO-LWT-OFDM system is 0. In the experimental verification， 1 W LED lamp beads were selected to build the point-to-point DCO-LWT-OFDM VLC system on the optical guide， the transmission distance was 20 cm， the system modulation error rate was 11.4 dB， and the reliability could reach 10^-4. This paper provides an effective way to improve the transmission rate of visible light communication， reduce the bit error rate and restrain the system PAPR.