A method and apparatus for depth lookup table (DLT) signaling in a three-dimensional and multi-view coding system are disclosed. According to the present invention, if the pictures contain only texture data, no DLT information is incorporated in the picture parameter set (PPS) corresponding to the pictures. On the other hand, if the pictures contain depth data, the DLT associated with the pictures is determined. If a previous DLT required for predicting the DLT exists, the DLT will be predicted based on the previous DLT. Syntax related to the DLT is included in the PPS. Furthermore, first bit-depth information related to first depth samples of the DLT is also included in the PPS and the first bit-depth information is consistent with second bit-depth information signaled in a sequence level data for second depth samples of a sequence containing the pictures.