Individual Tree Detection and Segmentation (ITDS) is a key step in accurately extracting forest structural parameters from LiDAR (Light Detection and Ranging) data. However, most ITDS algorithms face challenges with over-segmentation, under-segmentation, and the omission of small trees in high-density forests. In this study, we developed a bottom-up framework for ITDS based on seed points. The proposed method is based on density-based spatial clustering of applications with noise (DBSCAN) to initially detect the trunks and filter the clusters by a set threshold. Then, the K-Nearest Neighbor (KNN) algorithm is used to reclassify the non-core clustered point cloud after threshold filtering. Furthermore, the Random Sample Consensus (RANSAC) cylinder fitting algorithm is used to correct the trunk detection results. Finally, we calculate the centroid of the trunk point clouds as seed points to achieve individual tree segmentation (ITS). In this paper, we use terrestrial laser scanning (TLS) data from natural forests in Germany and mobile laser scanning (MLS) data from planted forests in China to explore the effects of seed points on the accuracy of ITS methods; we then evaluate the efficiency of the method from three aspects: trunk detection, overall segmentation and small tree segmentation. We show the following: (1) the proposed method addresses the issues of missing segmentation and misrecognition of DBSCAN in trunk detection. Compared to using DBSCAN directly, recall (r), precision (p), and F-score (F) increased by 6.0%, 6.5%, and 0.07, respectively; (2) seed points significantly improved the accuracy of ITS methods; (3) the proposed ITDS framework achieved overall r, p, and F of 95.2%, 97.4%, and 0.96, respectively. This work demonstrates excellent accuracy in high-density forests and is able to accurately segment small trees under tall trees.