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In this paper, we study the diversity-multiplexing tradeoff perspective of our proposed scheme called cooperative communication using Alamouti scheme with network coding. In this scheme, two cooperating users based on Alamouti scheme are aided by a single relay node. This relay node is used to forward network coded bits, of the information received from the cooperating users to the destination. The derived results on diversity-multiplexing tradeoff indicate that the proposed scheme offers higher diversity gain than the cooperative communication using Alamouti scheme only. The compromise made in terms of multiplexing gain is also derived and discussed.