Accurate individual tree crown delineation (ITCD), which can be used to estimate various forest parameters such as biomass, stem density, and carbon storage, stands as an essential component of precision forestry. Currently, raster data such as the canopy height model derived from airborne light detection and ranging (LiDAR) data have been widely used in large-scale ITCD. However, the accuracy of current existing algorithms is limited due to the influence of understory vegetation and variations in tree crown geometry (e.g., the delineated crown boundaries consistently extend beyond their actual boundaries). In this study, we achieved more accurate crown delineation results based on an expansion process. First, the initial crown boundaries were extracted through watershed segmentation. Then, a “from the inside out” expansion process was guided by a novel gradient feature to obtain accurate crown delineation results across different forest conditions. Results show that our method produced much better performance (~75% matched on average) than other commonly used methods across all test forest plots. The erroneous situation of “match but over-grow” is significantly reduced, regardless of forest conditions. Compared to other methods, our method demonstrates a notable increase in the precisely matched rate across different plot types, with an average increase of 25% in broadleaf plots, 18% in coniferous plots, 23% in mixed plots, 15% in high-density plots, and 32% in medium-density plots, without increasing over- and under- segmentation errors. Our method demonstrates potential applicability across various forest conditions, facilitating future large-scale ITCD tasks and precision forestry applications.