In this paper, a method for individual tree shape modeling and canopy coverage delineation is provided for high density airborne LiDAR data. Three basic 3-D canopy shape models are introduced as fundamental assumptions, and then an iterative algorithm for calculating tree canopy window is implemented. After that, the prototype test is carried out with simulated forest point data which visually shows a valid result. After that, a real mixed forest LiDAR dataset is being put into experiment. Based on the same theory, the output and a statistical analysis reveals that the proposed method can yield an effective and distinguishable extraction of different tree canopy coverage delineation.