The disclosure relates to a 5G or 6G communication system for supporting a higher data transmission rate. Accordingly, the embodiments herein provide a method for handling key distribution for multicast and broadcast services (MBS) in a wireless network. The method includes sending, by an application function (AF) server (100), an MB session announcement message to the UE (300) in the wireless network, where the MB session announcement message includes the TMGI and the HL MC address. Further, the method includes generating, by the AF server (100), the session key (KMBS) for the TMGI and the HL MC address, where the session key (KMBS) is provided to the UE (300) and the plurality of network entities (200). Further, the method includes protecting, by the AF server (100), a MBS traffic associated with the UE (300) and the plurality of network entities (200) using the generated session key (KMBS).