A method and apparatus are disclosed from the perspective of a first device. In one embodiment, the method includes the first device receiving a configuration, from a network node, of a first sidelink resource pool without any Physical Sidelink Feedback Channel (PSFCH) resource. The method further includes the first device receiving a first sidelink grant transmitted, configured, or scheduled by the network node, wherein the first sidelink grant schedules or indicates at least a first sidelink resource in the first sidelink resource pool. Furthermore, the method includes the first device expecting or considering that the first sidelink grant provides no Physical Uplink Control Channel (PUCCH) resource for reporting Sidelink (SL) Hybrid Automatic Repeat Request (HARQ) feedback.