We investigate the benefits of incorporating relays in future multi-user wireless networks that seek to exploit unexplored bands of very high frequency spectrum, where transmitted signals are known to be highly susceptible to outages. To this end, we examine a two-user bursty MIMO Gaussian interference channel with an in-band relay, where Bernoulli random states conceptually capture signal outages. As our main result, we show that an in-band relay can provide a degrees of freedom (DoF) gain in this bursty channel. This beneficial role of in-band relays in the bursty channel is in direct contrast to their role in the non-bursty channel which is not as significant to provide a DoF gain. More importantly, we demonstrate that in certain antenna configurations, an in-band relay can help achieve interference-free performances with increased DoF. We find the benefits particularly substantial in high-outage circumstances, as the DoF gain can grow linearly with the number of antennas at the relay. In this paper, first we derive an outer bound from which we obtain a necessary condition for interference-free DoF performances. Then we develop a novel scheme that exploits information of the bursty channel states to achieve them.