A method of small cell discovery and RSRP/RSRQ measurements in OFDM/OFDMA systems is proposed. A discovery reference signal (DRS) with low transmission frequency is introduced to support small cell detection within a short time, multiple small cell discovery, and accurate measurement of multiple small cells. The DRS consists of one or multiple reference signal types with the functionalities including timing and frequency synchronization, cell detection, RSRP/RSSI/RSRQ measurements, and interference mitigation. RE muting is configured for the DRS to reduce interference level from data to DRS for discovery and RSRP/RSRQ measurements for small cells.