With the ever growing demand of data applications, traditional cellular networks face the challenges of providing enhanced system capacity, extended cell coverage, and improved minimum throughput in a cost-effective manner. Wireless relay stations, especially when operating in a halfduplex operation, make it possible without incurring high site acquisition and backhaul costs. Design of wireless relay stations faces the challenges of providing backward compatibility, minimizing complexity, and maximizing efficiency. This article provides an overview of the challenges and solutions in the design of relay stations as one of the salient features for 3GPP LTE advanced.