LiDAR systems become more and more popular because of the potential use for obtaining the point clouds of vegetation and man-made objects on the earth surface in an accurate and quick way. Nowadays, these airborne systems have been frequently used in wide range of applications such as DEM/DSM generation, topographic mapping, object extraction, vegetation mapping, 3 dimensional (3D) modelling and simulation, change detection, engineering works, revision of maps, coastal management and bathymetry. The 3D building model generation is the one of the most prominent applications of LiDAR system, which has the major importance for urban planning, illegal construction monitoring, 3D city modelling, environmental simulation, tourism, security, telecommunication and mobile navigation etc. The manual or semi-automatic 3D building model generation is costly and very time-consuming process for these applications. Thus, an approach for automatic 3D building model generation is needed in a simple and quick way for many studies which includes building modelling. In this study, automatic 3D building models generation is aimed with airborne LiDAR data. An approach is proposed for automatic 3D building models generation including the automatic point based classification of raw LiDAR point cloud. The proposed point based classification includes the hierarchical rules, for the automatic production of 3D building models. The detailed analyses for the parameters which used in hierarchical rules have been performed to improve classification results using different test areas identified in the study area. The proposed approach have been tested in the study area which has partly open areas, forest areas and many types of the buildings, in Zekeriyakoy, Istanbul using the TerraScan module of TerraSolid. The 3D building model was generated automatically using the results of the automatic point based classification. The obtained results of this research on study area verified that automatic 3D building models can be generated successfully using raw LiDAR point cloud data.