Device-to-device (D2D) communications was proposed underlying cellular networks to increase system capacity to support high-data-rate multimedia services. However, D2D communications unavoidably bring along co-channel interference to conventional cellular users. In this paper, we propose interference-aware resource allocation (IARA) scheme for cellular networks with underlying D2D communications. The proposed IARA scheme is based on two-way channel gain estimations and interference level measurements. Related works are revisited and the proposed IARA scheme is discussed. Its performance is investigated through extensive computer simulations. IARA scheme outperforms random allocation (RA) scheme. We further propose to use adaptive transmission power for D2D users to protect cellular users from severe co-channel interference. Simulation results show that this allows for longer link distance for D2D users, leading to better resources reuse.