Compared with airborne laser scanning, terrestrial laser scanning (TLS) offers ground-based point cloud data of trees and provides greater potential to accurately estimate tree and stand parameters. However, there is a lack of effective methods to accurately identify locations of individual trees from TLS point cloud data. It is also unknown whether the estimation accuracy of the parameters, including tree height (H), diameter at breast height (DBH), and so on, using TLS can meet the requirement of forest management and planning. In this letter, a novel method to effectively process point cloud data and further determine the locations of individual trees in a stand based on the central coordinates of point cloud data on a defined grid according to the largest DBH was developed. Moreover, a point-cloud-data-based convex hull algorithm and the cylinder method were, respectively, used to estimate DBH and H of individual trees. This study was conducted in a pure Chinese fir plantation of 45 trees located in Huang-Feng-Qiao forest farm, You County of Hunan, China. The comparison of the estimated and observed values showed that the obtained tree locations had errors of less than 20 cm, and the relative root mean square errors for the estimates of both DBH and H were less than 5%. This implies that TLS is very promising for the retrieval of tree and stand parameters in forest stands. For the applications of these methods to mixed forests with a structure of multilayer canopies, further examination is needed.