A communication system includes: a signal identification module configured to receive a repeat response for receiving the repeat response associated with a receiver signal; a signal analysis module, coupled to the signal identification module, configured to determine a serving data, a serving channel estimate, an interference channel estimate, or a combination thereof an interference data from the repeat response with an interference-aware processing mechanism; a combining module, coupled to the signal analysis module, configured to combine the repeat response and the receiver signal based on the serving data, the serving channel estimate, the interference channel estimate, the interference data, or a combination thereof; and a decoding module, coupled to the combining module, configured to generate a replication data based on combining the repeat response and the receiver signal based on the serving data, the serving channel estimate, the interference channel estimate, the interference data, or a combination thereof for communicating with a device.