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The main problems of forest parameter extraction and forest stand volume estimation using unmanned aerial vehicle light detection and ranging (UAV-LiDAR) technology are the lack of precision in individual tree segmentation and the inability to directly obtain the diameter at breast height (DBH) parameter. To address such limitations, the study proposed an improved individual tree segmentation method combined with a DBH prediction model to obtain the tree height (H) and DBH for calculating the volume of trees, thus realizing the accurate estimation of forest stand volume from individual tree segmentation aspect. The method involves the following key steps: (1) The local maximum method with variable window combined with the Gaussian mixture model were used to detect the treetop position using the canopy height model for removing pits. (2) The measured tree DBH and H parameters of the sample trees were used to construct an optimal DBH-H prediction model. (3) The duality standing tree volume model was used to calculate the forest stand volume at the individual tree scale. The results showed that: (1) Individual tree segmentation based on the improved Gaussian mixture model with optimal accuracy, detection rate r, accuracy rate p, and composite score F were 89.10%, 95.21%, and 0.921, respectively. The coefficient of determination R2 of the accuracy of the extracted tree height parameter was 0.88, and the root mean square error RMSE was 0.84 m. (2) The Weibull model had the optimal model fit for DBH-H with predicted DBH parameter accuracy, the R2 and RMSE were 0.84 and 2.28 cm, respectively. (3) Using the correctly detected trees from the individual tree segmentation results combined with the duality standing tree volume model estimated the forest stand volume with an accuracy AE of 90.86%. In conclusion, using UAV-LiDAR technology, based on the individual tree segmentation method and the DBH-H model, it is possible to realize the estimation of forest stand volume at the individual tree scale, which helps to improve the estimation accuracy. [ABSTRACT FROM AUTHOR]