Zheng and Tse have shown that over a quasi-static channel, there exists a fundamental tradeoff, known as the diversity-multiplexing gain (D-MG) tradeoff. In a realistic system, to avoid inefficiently operating the power amplifier, one should consider the situation where constraints are imposed on the Peak to Average Power Ratio (PAR) value of the transmitted signal. In this paper, we investigate the D-MG tradeoff of multi-antenna systems with PAR constraints. For Rayleigh fading channels, the result shows that the D-MG tradeoff remains the same even with PAR constraints.