Localization in Wireless Sensor Networks (WSNs) has been an active topic for more than two decades. A variety of algorithms were proposed to improve the localization accuracy. However, they are either limited to two-dimensional (2D) space, or require specific sensor deployment for proper operations. In this paper, we proposed a three-dimensional (3D) localization scheme for WSNs based on the well-known parametric Loop division (PLD) algorithm. The proposed scheme localizes a sensor node in a region bounded by a network of anchor nodes. By iteratively shrinking that region towards its center point, the proposed scheme provides better localization accuracy as compared to existing schemes. Furthermore, it is cost-effective and independent of environmental irregularity. We provide an analytical framework for the proposed scheme and find its lower bound accuracy. Simulation results shows that the proposed algorithm provides an average localization accuracy of 0.89 m with a standard deviation of 1.2 m.