Relay-assisted cooperative communication exploits spatial diversity to combat wireless fading, and is an appealing technology for next generation wireless systems. Several relay cooperation protocols have been proposed in the literature. In amplify-and-forward (AF)relaying, which is the focus of this thesis, the relay amplifies the signal it receives from the source and forwards it to the destination. AF has been extensively studied in the literature on account of its simplicity since the relay does not need to decode the received signal. We propose a novel optimal relaying policy for two-hop AF cooperative relay systems. In this, an average power-constrained relay adapts its gain and transmit power to minimize the fading-averaged symbol error probability (SEP) at the destination. Next, we consider a generalization of the above policy in which the relay operates as an underlay cognitive radio (CR). This mode of communication is relevant because it promises to address the spectrum shortage constraint. Here, the relay adapts its gain as a function of its local channel gain to the source and destination and also the primary such that the average interference it causes to the primary receiver is also constrained. For both the above policies, we also present near-optimal, simpler relay gain adaptation policies that are easy to implement and that provide insights about the optimal policies. The SEPs and diversity order of the policies are analyzed to quantify their performance. These policies generalize the conventional fixed-power and fixed-gain AF relaying policies considered in cooperative and CR literature, and outperform them by 2.0-7.7 dB. This translates into significant energy savings at the source and relay, and motivates their use in next generation wireless systems.