The aboveground biomass (AGB) of individual trees is a critical indicator for assessing urban forest productivity and carbon storage. In the context of global warming, it plays a pivotal role in understanding urban forest carbon sequestration and regulating the global carbon cycle. Recent advances in light detection and ranging (LiDAR) have enabled the detailed characterization of three-dimensional (3D) structures, significantly enhancing the accuracy of individual tree AGB estimation. This review examines studies that use LiDAR-derived 3D structural metrics to model and estimate individual tree AGB, identifying key metrics that influence estimation accuracy. A bibliometric analysis of 795 relevant articles from the Web of Science Core Collection was conducted using R Studio (version 4.4.1) and VOSviewer 1.6.20 software, followed by an in-depth review of 80 papers focused on urban forests, published after 2010 and selected from the first and second quartiles of the Chinese Academy of Sciences journal ranking. The results show the following: (1) Dalponte2016 and watershed are more widely used among 2D raster-based algorithms, and 3D point cloud-based segmentation algorithms offer greater potential for innovation; (2) tree height and crown volume are important 3D structural metrics for individual tree AGB estimation, and biomass indices that integrate these parameters can further improve accuracy and applicability; (3) machine learning algorithms such as Random Forest and deep learning consistently outperform parametric methods, delivering stable AGB estimates; (4) LiDAR data sources, point cloud density, and forest types are important factors that significantly affect the accuracy of individual tree AGB estimation. Future research should emphasize deep learning applications for improving point cloud segmentation and 3D structure extraction accuracy in complex forest environments. Additionally, optimizing multi-sensor data fusion strategies to address data matching and resolution differences will be crucial for developing more accurate and widely applicable AGB estimation models.