A relay is an electrically operated switch. Many relays use an electromagnet to operate a switching mechanism mechanically, but other operating principles are also used. Relays are used where it is necessary to control a circuit by a low-power signal (with complete electrical isolation between control and controlled circuits), or where several circuits must be controlled by one signal. The first relays were used in long distance telegraph circuits, repeating the signal coming in from one circuit and re-transmitting it to another. Relays were used extensively in telephone exchanges and early computers to perform logical operations.

A type of relay that can handle the high power required to directly control an electric motor or other loads is called a contactor. Solid-state relays control power circuits with no moving parts, instead using a semiconductor device to perform switching. Relays with calibrated operating characteristics and sometimes multiple operating coils are used to protect electrical circuits from overload or faults; in modern electric power systems these functions are performed by digital instruments still called "protective relays".

A simple electromagnetic relay consists of a coil of wire wrapped around a soft iron core, an iron yoke which provides a low reluctance path for magnetic flux, a movable iron armature, and one or more sets of contacts (there are two in the relay pictured). The armature is hinged to the yoke and mechanically linked to one or more sets of moving contacts. It is held in place by a spring so that when the relay is de-energized there is an air gap in the magnetic circuit. In this condition, one of the two sets of contacts in the relay pictured is closed, and the other set is open. Other relays may have more or fewer sets of contacts depending on their function. The relay in the picture also has a wire connecting the armature to the yoke.

When an electric current is passed through the coil it generates a magnetic field that activates the armature, and the consequent movement of the movable contact(s) either makes or breaks (depending upon construction) a connection with a fixed contact. If the set of contacts was closed when the relay was de-energized, then the movement opens the contacts and breaks the connection, and vice versa if the contacts were open. When the current to the coil is switched off, the armature is returned by a force, approximately half as strong as the magnetic force, to its relaxed position. Usually this force is provided by a spring, but gravity is also used commonly in industrial motor starters. Most relays are manufactured to operate quickly. In a low-voltage application this reduces noise; in a high voltage or current application it reduces arcing.

When the coil is energized with direct current, a diode is often placed across the coil to dissipate the energy from the collapsing magnetic field at deactivation, which would otherwise generate a voltage spike dangerous to semiconductor circuit components. Some automotive relays include a diode inside the relay case. Alternatively, a contact protection network consisting of a capacitor and resistor in series (snubber circuit) may absorb the surge. If the coil is designed to be energized with alternating current (AC), a small copper "shading ring" can be crimped to the end of the solenoid, creating a small out-of-phase current which increases the minimum pull on the armature during the AC cycle. A solid-state relay uses a thyristor or other solid-state switching device, activated by the control signal, to switch the controlled load, instead of a solenoid. An optocoupler (a light-emitting diode (LED) coupled with a photo transistor) can be used to isolate control and controlled circuits.