A large number of phone calls and data services will take place in indoor environments. In Long Term Evolution (LTE), femtocell, as a home base station for indoor coverage extension and wideband data service, has recently gained significant interests from operators and consumers. Since femtocell is frequently turned on and off by a personal owner, not by a network operator, one of the key issues is that femtocell should be identified autonomously without system information to support handover from macrocell to femtocell. In this paper, we propose a dynamic reservation scheme of Physical Cell Identities (PCI) for 3GPP LTE femtocell systems. There are several reserving types, and each type reserves a different number of PCIs for femtocell. The transition among the types depends on the deployed number of femtocells, or the number of PCI confusion events. Accordingly, flexible use of PCIs can decrease PCI confusion. This reduces searching time for femtocell, and it is helpful for the quick handover from macrocell to femtocell. Simulation results show that our proposed scheme re- duces average delay for identifying detected cells, and increases network capacity within equal delay constraints. The 3rd Generation Partnership Project (3GPP) is work- ing on the standardization of asynchronous communication systems. This technology is being enhanced gradually en- suring higher user data rate, bigger system capacity, and lower cost. The wideband CDMA (WCDMA) system is standardized with 3GPP release 99/4 which is being de- ployed in the world. Release 5 is related to High Speed Downlink Packet Access (HSDPA), and it improves the downlink packet transmission speed theoretically up to 14.4 Mbps. High Speed Uplink Packet Access (HSUPA) is enhanced up to 5.76 Mbps in uplink, and it is standardized with the Release 6. We simply mention both HSDPA and HSUPA as High Speed Packet Access (HSPA). In release 7, High Speed Packet Access Evolution (eHSPA, HSPA+) is standardized. eHSPA is based on the HSPA network with a simple upgrade, and it supports more bandwidth efficiency and lower latency. The maximum data rate is 28.8 Mbps in downlink and 11.5 Mbps in uplink (1). How- ever, users still require further system improvements. The technology is dramatically enhanced in release 8, where the standard of Long Term Evolution (LTE) is currently being established. The main objectives of LTE are higher data rates, lower latency, increased capacity, enhanced coverage, and an optimized system for the packet switching network (2). LTE also considers a femtocell, which is referred to as a home base station for an indoor coverage extension and overall network performance enhancement (3). Recently, LTE-Advanced standard targeting of 1Gbps for low mobil- ity is being discussed in release 9. We look into general features and requirements of fem- tocells. Important issues related to access control are de- scribed, followed by our contributions and organization of the paper.