A method and apparatus for improved intra prediction mode coding are disclosed. Intra prediction exploits the spatial correlation within a picture or within a picture region. In High-Efficiency Video Coding (HEVC), a coding scheme for the intra luma prediction mode is considered, where the intra prediction mode of a current block is compared with the minimum of two intra luma prediction modes corresponding to two neighboring blocks. If the intra prediction mode of the current block is the same as the minimum of the two neighboring intra luma prediction modes, a single bit is transmitted to indicate the case. Otherwise, information for the current intra prediction mode is transmitted in fixed-length codeword. The present invention provides multiple intra prediction mode candidates based on neighboring intra prediction modes so that there is a better chance for predictor hit. Accordingly, improved coding efficiency is achieved.