In a palette prediction that includes a copy-above mode for predicting one or more first pixels based on one or more above pixels located above said one or more first pixels correspondingly, a method of palette mode coding using palette prediction for a picture includes receiving input data associated with a current block and determining a current coding mode for one or more current pixels. If the current coding mode corresponds to the copy-above mode, then the method identifies one or more above pixels located above said one or more current pixels correspondingly, wherein said one or more above pixels are restricted to be non-Escape pixels. The method further encodes the one or more current pixels by using said one or more above pixels as predictors.