A method and apparatus are disclosed. In an example from the perspective of a User Equipment (UE), if sidelink packet duplication is configured or enabled for a Sidelink Radio Bearer (SLRB), a first Packet Data Convergence Protocol (PDCP) Protocol Data Unit (PDU), corresponding to a first PDCP Service Data Unit (SDU), and a duplicate of the first PDCP PDU, are transmitted. A first PDCP Sequence Number (SN) of the first PDCP PDU is set based upon one or more state variables used for sidelink transmission on the SLRB. If the sidelink packet duplication is de-configured or disabled for the SLRB, a second PDCP PDU, corresponding to a second PDCP SDU, is transmitted. Noduplicate of the second PDCP PDU is transmitted. A second PDCP SN of the second PDCP PDU is set based upon the one or more state variables used for sidelink transmission on the SLRB.