An algorithm was developed in order to reduce operator dependence in ultrasound-guided breast biopsy, by automatically locating the needle in the ultrasound image, and displaying its location on the image for the user. Ultrasound images of a typical breast biopsy needle inserted in a tissue-mimicking agar were obtained to test the algorithm. The resulting images were examined by a group of observers who recorded the values of the angle, intercept and tip coordinates of the needle in the image, and inter- and intra-observer variability studies were performed on the results. The results of the algorithm segmentation were compared to the values recorded by the observers, and physical measurements recorded at the time the images were acquired. The algorithm segmentation was precise enough to successfully (when considering angle and tip segmentation) target 90% of tumors of 4.5 mm in diameter situated at the center of the image.