A method is to process packets in a wireless communication system including an evolved core network, a plurality of user devices, and an evolved node B (eNB), the evolved core network including a policy and charging rules function (PCRF), a serving gateway, a caching management gateway and a mobile management entity (MME). The method includes receiving, via the PCRF, the packets; obtaining, via the MME, an user device number; estimating, via the caching management gateway, a connectivity parameter corresponding to the user devices; generating, via the caching management gateway, a decision result according to popularities and sizes of the packets, the user device number and the connectivity parameter; and instructing, via the serving gateway, the eNB and the user devices to cache the packets according to the decision result.