A method of dispatching and transmitting data stream, which is used for a memory storage apparatus having a non-volatile memory module and a smart card chip, is provided. The method includes configuring a plurality of logical block addresses, and a plurality of specific logical block addresses are used for storing a specific file. The method also includes receiving a response data unit from the smart card chip and storing the response data unit in a buffer memory. The method also includes, when a logical block address corresponding to a read command from a host system belongs to one of the specific logical block addresses and the buffer memory stores a response data unit, transmitting the response data unit stored in the buffer memory to the host system. Accordingly, the method can make the host system to correctly receive the response data unit from the smart card chip.