The peak power of the digital predistortion (DPD) will be uncontrollably expand when the power amplifier (PA) is driven in the oversaturated state. To solve this problem, this letter proposes a peak limited digital predistortion method. By filtering the data used for predistortion coefficient extraction, the peak power of the predistorted signal can be effectively controlled. The memory effect of PA is considered during the data filtering. Less data samples are needed for coefficient extraction, which reduces the computational cost. Simulation verifies the effectiveness of the proposed method, and experimental results show that the adjacent channel leakage ratio (ACLR) can have 12.4dB improvement when the tested PA is operated in an oversaturated state.