In this paper, we present a two-user cooperative automatic repeat request (C-ARQ) protocol which combines cooperative diversity at the physical layer and ARQ at the link layer. In this scheme, distributed Alamouti space-time block coding (DASTBC) is applied to achieve cooperative diversity, and ARQ is used to improve the data link layer reliability. To analyze the performance of the proposed protocol, we derive the average frame error rate (FER) and throughput with multiple phase shift keying (MPSK) over a Rayleigh fading channel. Numerical simulation results show that the performance gain of average FER with ARQ retransmission is about 2 dB more than the case without ARQ retransmission in the same conditions. Moreover, the combined DASTBC and quadrature phase shift keying (QPSK) with ARQ retransmission will lead to an approximate 3 Mbits/s increase in transmission rate.