Provided is a wireless relay system including multiple terminal station apparatuses and a base station apparatus. The base station apparatus includes: a base station reception unit that respectively receives pieces of upstream data traffic from the multiple terminal station apparatuses; an encoding unit that, if pieces of upstream data traffic that require mutual forwarding in opposite directions are present in the respective pieces of upstream data traffic, performs network encoding on the respective pieces of upstream data traffic such that the pieces of upstream data traffic are pieces of data traffic of mutually identical content; and a base station transmission unit that simultaneously transmits encoded data traffic as downstream data traffic to the multiple terminal station apparatuses. The terminal station apparatuses each include: a terminal station transmission unit that transmits the upstream data traffic to the base station apparatus; a terminal station reception unit that receives the encoded data traffic; and a decoding unit that decodes the encoded data traffic using the upstream data traffic.