The invention belongs to the technical field of communication, and relates to an OFDM-based Radar and Communication (RadCom) system. The method is based on the traditional OFDM system, and is characterized in that at a transmitting end, bit streams to be sent are modulated into data symbols, local waveform retention designing is carried out according to a data bandwidth ratio through the data symbols and a random phase sequence to obtain RadCom frequency domain signals, the signals are then mapped into the time domain through IFFT, Cyclic Prefix (CP) addition is carried out on the mapped signals, and signals obtained through the CP addition are sent to a channel through a radio frequency front end; at a receiving end, CP removal is carried out on the received signals, signals obtained through the CP removal are mapped into the frequency domain through FFT, the mapped signals are equalized to compensate for channel distortions, symbol extraction is carried out on the equalized symbols according to the data bandwidth ratio, and bit information is finally obtained through symbol demodulation; and meanwhile, the frequency domain signals at the transmitting end and the receiving end areused for radar processing. The system provided by the invention has the advantages that the partly retention loop algorithm is introduced, so that the bandwidth can be flexibly allocated under the premise that the advantages of a communication system are maintained, the PAPR can be effectively reduced, and the spectrum utilization efficiency can be improved.