A method of handling location service for a mobile device compatible with a plurality of radio access technologies (RATs) in a wireless communication system is disclosed. The method comprises utilizing a first RAT of the plurality of RATs to communicate with a network of the wireless communication system, receiving a first message including positioning support information of the network from the network, and determining whether to initiate a location service in the first RAT or in a second RAT of the plurality of RATs according to the positioning support information.