• Fairy circles are detected from 3D point clouds of UAV LiDAR for the first time. • A new model is proposed to correct the intensity data of UAV LiDAR. • Merely corrected intensity data can reliably be used for point cloud filtering. • Absent instantaneous UAV LiDAR scanning distances and scan angles are recovered. • The proposed method is promising for spatial patterns recognition in other scenes. Fairy circles (FC) are a type of spatial self-organized patterns that widely exist in various vegetation ecosystems and the accurate detection and quantitative characterization of these mysterious circles remain a technical challenge. In this study, vegetation FC in intertidal salt marshes are recognized from the derived reflectance information (backscattered intensity) and geometric quantities of light detection and ranging (LiDAR) carried on unmanned aerial vehicle (UAV). The specular effect on the UAV LiDAR intensity data over nadir regions of wet salt marshes is eliminated using the laser radar equation and Phong model where the absent distances and incidence angles are approximately retrieved on the basis of geometric and temporal relations in data collection. The FC are progressively recovered through three interconnected procedures. First, the retrieved reflectance information is used to discriminate the mudflat and vegetation points. Second, a spatial connectivity clustering algorithm is utilized on the extracted vegetation points to form individual spatially disconnected clusters. Finally, FC and regular vegetation are successfully recognized by jointly using the salient, size, and circularity features of the generated clusters. A multi-echo UAV LiDAR system is used for data collection at an intertidal salt marsh to assess the feasibility and prospects of the proposed method. Taking the manual detection results from the orthophoto generated by images of a UAV camera system as a reference, the missing detection rate, false detection rate, and area detection error of the proposed method are 6%, 9%, and 5%, respectively. Results suggest that UAV LiDAR is an extremely promising technique to characterize the geometric properties (e.g., location, size, and quantity) of FC from a holistic perspective.