A user equipment (UE) receives and decodes a first erroneous transport block (TB) from a base station in a mobile communication network. The UE allocates a first soft buffer having a first buffer size. The first soft buffer is associated with a first HARQ process for storing the first TB. The UE then receives and decodes a second erroneous TB from the base station. The UE allocates a second soft buffer having a second buffer size. The second soft buffer is associated with a second HARQ process for storing the second TB. The UE releases a portion of the first soft buffer to be allocated as part of the second soft buffer. The dynamic buffer allocation method reduces mismatch between rate matching and soft buffer storing when the total number of HARQ processes is small. In addition, more HARQ processes can be supported when the corresponding TB size is small.