Now a days all wireless communication systems de-mands for high capacity and high data rate. The long term evolution(LTE) wireless communication stand-ard is used to achieve the high data rate during mo-bility. For the increase in coverage area LTE has developed the small cellular cells. These cells are known as femtocells. Femtocells improves data and voice capacity dramatically. But there is one problem regarding with femtocell and that is the in-terference between two femtocells called as Intercell interference(ICI) and interference between one femtocell and one macrocell called as Cross tier in-terference. This interference problem causes signifi-cant degradation in performance. We are trying to propose a system which will together mitigate the Intercell Interference and cross tier interference. In this project, we propose a scheme called Cluster-Aware Soft Frequency Reuse (CASFR) which will assign the set of Physical Resource Blocks (PRB)s to each interfering femtocells. The CASFR first uses periodic messages/symbols from the user to identify the interfering femtocells. It then splits each femtocell area into cell-edge and cell-center. At the last, it uses the algorithm to assign the sets of PRBs which are not interfering to the cell-edge and cell-center users of all the interfering femtocells. We also proposed a PRB Swapping and Exchange (PSE) al-gorithm for the to reduce any interference that may remain after performing CASFR. CASFR is used for downlink interference mitigation and PSE for uplink interference mitigation.