Disclosed is a cellular communication system allowing direct communication between terminals within a cell or simultaneous transmission and reception of signals between a base station and the terminals through a repeater to be made by introducing a universal link, and a communication method thereof. The communication method of the cellular communication system includes: transmitting, by a base station, universal link setting information and a transmission control signal to a first terminal within a cell, transmitting, by the base station, the universal link setting information and a reception control signal to a second terminal within the cell, and directly transmitting/receiving, by the first and second terminals, signals through the universal link.