The tree diameter at breast height (DBH) is one of the most important variables for monitoring the forest ecology. Mobile laser scanning (MLS), which has been widely applied in the forestry field, makes DBH measurement fast and convenient. However, there are many shrubs and deadwood in the neutral forest environment and the point clouds quality from MLS are easily affected by the environment which results in low single tree segmentation and DBH estimation accuracy. To improve the accuracy in a complex forest environment and low point cloud quality, we propose a relative density segmentation method for the single tree segmentation and DBH estimation method based on multi-height diameters for the DBH estimation. The relative density segmentation method calculates the relative density according to the ratio of density in two different scales, and segments the tree trunks by the higher relative density of trunk point clouds compared with their surroundings points. In the natural forest plot, the precision and recall of the proposed segmentation method reached 0.966 and 0.946, respectively; In the urban forest plot, the precision and recall reached 1 and 0.966, respectively. The proposed DBH estimation method was used to estimate the DBH of trees using multi-height diameters. The multi-height diameters combined with the outlier detection algorithm were able to improve the accuracy and robustness when the trunk point clouds have large noise. For the DBH estimation results, the mean absolute error (MAE), mean absolute percentage error (MAPE), and root mean square error (RMSE) were 2.5 cm, 11.54%, and 3.17 cm, respectively, in the natural forest plot and 1.65 cm, 6.31%, and 1.97 cm, respectively, in the urban forest plot. The good experiment results indicate that the proposed method can achieve accurate and robust DBH extraction and provide fundamental data for supervision and sustainable development of forest resources.