A method and a user equipment for resource allocation of vehicle network are provided. The method includes: sensing available resource blocks (RBs) to generate a first resource indicator labeling location information of the available RBs; receiving second resource indicators from neighboring devices in which the second resource indicators label location information of the available RBs sensed by the neighboring devices; combining the first resource indicator and the second resource indicators into a cooperative resource indicator and sending the cooperative resource indicator to a base station providing a centralized network; and receiving location information of a dedicated RB assigned by the base station according to the cooperative resource indicator and sending messages via the dedicated RB.