Method and apparatus for signaling or parsing constrained active entries in reference picture lists for multi-layer coding are disclosed. For the decoder side, when the current picture is a RADL (Random Access Decodable Leading) picture, reference picture list 0 or reference picture list 1 of the current picture is mandatorily required to contain no active entry corresponding to a RASL (Random Access Skipped Leading) picture with pps_mixed_nalu_types_in_pic_flag equal to 0 or a picture that precedes an associated IRAP (Intra Random Access Point) picture in decoding order, and wherein an active entry in the reference picture list 0 or the reference picture list 1 of the RADL picture can refer to a RASL picture with the pps_mixed_nalu_types_in_pic_flag equal to 1 and a referenced RASL picture either belongs to the same layer or a different layer than a layer containing the current picture which is the RADL picture.