Method and apparatus for determining a modulation scheme in direct link-based communication. A method implemented in a transmitting (TX) terminal device is provided. According to the method, a link quality of a direct link for transmission of information from the TX terminal device to one or more receiving (RX) terminal devices is determined based on one or more of the following: a context of the TX terminal device, or one or more reference signal received qualities (RSRQs) from the one or more RX terminal devices. A modulation scheme for modulating the information is determined based on the link quality. The information is modulated with the determined modulation scheme and the modulated information is transmitted to the one or more RX terminal devices via the direct link.