The present disclosure provides a method and system for implementing a local IP service through a relay node, through which a PDN connection between a local UE and a local gateway is established, and local IP service data are transmitted through the relay node between the UE and the local gateway. In the present disclosure, a local gateway is embedded into a relay node, or the local gateway is collocated with the relay node, or the local gateway is connected to the relay node via a wired connection, and a PDN connection between a local UE and the local gateway is established through the relay node. The present disclosure can support not only a local service or a proximity-based service between a relay node and a UE but also a local service or a proximity-based service between two or more UEs through a relay node, thus supporting extensive applications based on local IP data streams and reducing the load of a core network. In addition, spectral efficiency and throughput can also be improved by using a short distance wireless channel.