ABSTRACT Laser scanning data are increasingly used to segment forests into homogeneous units, called segments or stand compartments. Region growing and region merging have been traditionally employed for this purpose. Recently, alternative methods such as cellular automata (CA), self-organizing maps (SOM), and combinatorial optimization have emerged, promising more homogeneous stand delineations. However, these newer methods often require fine-tuning due to rugged stand boundaries. To address this, we propose and assess a novel hybrid approach that combines two segmentation algorithms, resulting in smoother boundaries and homogeneous stands. Our hybrid method outperforms traditional fine-tuning techniques, particularly using CA or SOM for initial segmentation and then refining it with another cellular automaton (CA’), adjusted to produce smooth boundaries. The new two-step hybrid method resulted in better segmentation results than the one-step algorithm combined with previously suggested fine-tuning methods. SOM-CA’ showed the highest degree of explained variance (R2) of the LiDAR metrics used in the segmentation. CA-CA’ reached almost the same R2 values with a larger average segment area. When the R2 of the LiDAR metrics was used as the criterion, the segments produced by the hybrid method outperformed the stand delineations of the current Spanish forest map with a clear margin.