In this paper, we describe an algorithm to segment a needle from a three-dimensional (3D) ultrasound image by using two orthogonal two-dimensional (2D) image projections. Not only is the needle more conspicuous in a projected (volume-rendered) image, but its direction in 3D lies in the plane defined by the projection direction and the needle direction in the projected 2D image. Hence, using two such projections, the 3D vector describing the needle direction lies along the intersection of the two corresponding planes. Thus, the task of 3D needle segmentation is reduced to two 2D needle segmentations. For improved accuracy and robustness, we use orthogonal projection directions (both orthogonal to a given a priori estimate of the needle direction), and use volume cropping and Gaussian transfer functions to remove complex background from the 2D projection images. To evaluate our algorithm, we tested it with 3D ultrasound images of agar and turkey breast phantoms. Using a 500 MHz personal computer equipped with a commercial volume-rendering card, we found that our 3D needle segmentation algorithm performed in near real time (about 10 fps) with a root-mean-square accuracy in needle length and endpoint coordinates of better than 0.8 mm, and about 0.5 mm on average, for needles lengths in the 3D image from 4.0 mm to 36.7 mm.