This paper is divided into two parts. In the first part, we analyze outage probability of dynamic decode and forward (DDF) with network coding (NC) and compare outage probability with using NC and without using NC. In the second part, we use MATLAB programming language to simulate our system model. We simulate outage probability and compare the simulation result with numerical value of outage probability in the first part to prove the correctness of the analytical outage probability. Our results show that network coding can improve the outage probability of considered system model.