Background/Objectives: In order to achieve high reliability and throughput, cooperative communication is being used in wireless networks. This technology is an efficient approach in reducing the energy consumption. Methods/Statistical Analysis: In this sense, the Decode andForward Relay protocol is analyzed where the Physical Network Coding (PNC) with Slepian-Wolf is incorporated in the Decode and Forward Relaying (DF) protocol. The PNC with Slepian-Wolf usage reduces the energy consumption in relay communication due to the compression and reduced time slots, when compared to the traditional relay transmission schemes and also increases the coverage of the cell. Findings: The spectral efficiency is varied, PNC with Slepian-Wolf assures higher energy efficiency than the traditional scheme when the spectral efficiency is higher and when the spectral efficiency is lower, both the schemes consumes nearly the same energy. Again when the downlink rate is higher than the uplink rate, that is, in case of asymmetric traffic conditions, both traditional scheme using DF protocol and the proposed PNC with DF protocol have similar relay deployment and PNC with Slepian-Wolf shows lower energy consumption. Conclusion/Improvements: Thus, the proposed scheme shows good performance when the spectral efficiency is higher and the downlink rate is higher than the downlink rate.