A system and method for two-way relaying with beamforming are provided. A method for relay operations includes estimating communications channels between a relay and communications devices coupled to the relay, storing data contained in the transmissions, storing data contained in the transmissions, precoding a transmission including a subset of the stored data with a precoding matrix, and transmitting the precoded transmission. The estimating is based on transmissions made by the communications devices in the subset of communications devices, and the precoding matrix is based on estimates of the communications channels.