A method and apparatus for video coding of chroma coded in derived-mode Intra prediction are disclosed. If derived-mode (DM) Intra prediction is selected for a current chroma block, a corresponding luma block area is determined by locating a first upper-left pixel address of the corresponding luma block area corresponding to that of the current chroma block. Further, one or more candidate luma coding modes are determined from a sub-block set consisting of one or more sub-blocks of the corresponding luma block area, where if the sub-block set consists of only one sub-block, the sub-block set excludes a corner sub-block located at a top-left corner of the corresponding luma block area. Additionally, a current chroma Intra mode for the current chroma block is derived based on information comprising the candidate luma coding modes, and Intra-prediction encoding or decoding is applied to the current chroma block using the current chroma Intra mode derived.