A method of video coding using palette coding mode for color video in a non-444 color format is disclosed. The non-444 video data can be converted to the 444 format so that the palette designed for the 444 format can be used for the non-444 video data. For the 4:2:0 color format, each chroma sample collocated with corresponding quad luma samples is padded with three chroma samples to form converted quad chroma samples. For the 4:2:0 color format, if a current pixel does not belong to the color palette, one or more escape values are signaled for the current pixel and the escape value associated with the chroma sample of the current pixel for each color component is not signaled for three of the quad chroma sample locations collocated with corresponding quad luma samples.