A method and an apparatus for reducing Digital-to-Analog Conversion (DAC) bits at a transmitter of a Frequency Division Multiple Access (FDMA) system reduces a number of the bits for conversion so as to save power and reduce the cost of operation. The method can include generating a digital signal gain control value and an analog signal gain control value using subcarrier allocation information, a required Signal to Noise Ratio (SNR), and a Peak to Average Power Ratio (PAPR); controlling a gain of a signal input to a digital-to-analog converter using the digital signal gain control value; converting a digital signal of the controlled gain to an analog signal using the digital-to-analog converter; and restoring an original signal by controlling a gain of a signal output from the digital-to-analog converter using the analog signal gain control value.