A method and system for detecting and tracking objects near a vehicle using a three dimensional laser rangefinder. The method receives points from the laser rangefinder, where the points represent locations in space where the rangefinder senses that some object exists. An algorithm first estimates the location of a ground plane, based on a previous ground plane location, data from onboard sensors, and an eigenvector calculation applied to the point data. Next, a plan view occupancy map and elevation map are computed for stationary objects, based on point data in relation to the ground plane. Finally, dynamic objects are detected and tracked, sensing objects which are moving, such as other vehicles, pedestrians, and animals. The output of the method is a set of stationary and dynamic objects, including their shape, range, and velocity. This output can be used by downstream applications, such as collision avoidance or semi-autonomous driving systems.