A method of measurement gap reporting and configuration is provided. In a mobile network, a UE receives a capability enquiry message from a serving base station. The UE comprises one or more radio frequency modules that support a list of frequency bands and a list of carrier aggregation (CA) band combinations. In response to the enquiry, the UE transmits capability information containing measurement parameters to the base station. In one embodiment, the measurement parameters comprise need-for-gap parameters for each frequency band and each CA band combinations associated with a list of to-be-measured frequency bands of target cells. Based on the reported measurement parameters, the eNB transmits a measurement configuration message to the UE. Finally, the UE transmits a measurement gap application message back to the base station. The measurement gap application message indicates whether the UE applies MG for each configured component carrier.