Solutions for data network name (DNN) selection when user equipment (UE) route selection policy (URSP) rule is applied in evolved packet system (EPS) with respect to user equipment and network apparatus in mobile communications are described. An apparatus may start an application in an EPS network. The apparatus may select a URSP rule from one or more configured URSP rules by matching a traffic descriptor (TD) of the URSP rule with the application. The apparatus may determine whether a data network name (DNN) or access point name (APN) included in a route selection descriptor (RSD) is a local area data network (LADN) DNN or APN. The apparatus may skip the RSD in an event that the DNN or APN is the LADN DNN or APN. The apparatus may evaluate a next RSD or a next URSP rule in case that the next RSD or the next URSP rule is available.