A method of handling a location reporting procedure comprises performing, by a first proximity service (ProSe) function entity, a registration procedure for a proximity service with a first communication device; and performing, by the first ProSe function entity, the location reporting procedure for the proximity service between the first communication device and a second communication device; and transmitting, by the first ProSe function entity, a cancel location reporting message to a Secure User Plane Location (SUPL) Location Platform (SLP) server to cancel the location reporting procedure for the first communication device registered to the first ProSe function entity, when a timer of the proximity request message expires.