This paper introduces a novel method for accurately calculating the upper biomass of single trees using Light Detection and Ranging (LiDAR) point cloud data. The proposed algorithm involves classifying the tree point cloud into two distinct ones: the trunk point cloud and the crown point cloud. Each part is then processed using specific techniques to create a 3D model and determine its volume. The trunk point cloud is segmented based on individual stems, each of which is further divided into slices that are modeled as cylinders. On the other hand, the crown point cloud is analyzed by calculating its footprint and gravity center. The footprint is further divided into angular sectors, with each being used to create a rotating surface around the vertical line passing through the gravity center. All models are represented in a matrix format, simplifying the process of minimizing and calculating the tree’s upper biomass, consisting of crown biomass and trunk biomass. To validate the proposed approach, both terrestrial and airborne datasets are utilized. A comparison with existing algorithms in the literature confirms the effectiveness of the new method. For a tree dimensions estimation, the study shows that the proposed algorithm achieves an average fit between 0.01 m and 0.49 m for individual trees. The maximum absolute quantitative accuracy equals 0.49 m, and the maximum relative absolute error equals 0.29%.