This paper describes the waveform relaxation (WR) algorithm with the under relaxation method based on the virtual state formulation (VSF) technique and the effect of multirate behavior in this algorithm. First, we present the virtual state relaxation method using VSF technique. Next, we introduce the VSF method into WR algorithm in order to exploit the multirate behavior. Furthermore, we construct the relaxation-based circuit simulator DESIRE2 and apply this simulator to the transient analysis of MOS circuits. Finally, we show that the present technique enables to use efficiently the multirate integration method in VSR and reduce the total simulation time without losing the waveform accuracy.