We describe a new algorithm for 3D, and potentially higher, volume rendering. This algorithm takes advantage of the shear-warp factorization technique to reduce matrix computing and a hierarchical data structure for better utilization of spatial coherence. The algorithm represents an improvement over existing algorithms in terms of performance, with little compromise in image quality. The algorithm benefits 3D volume rendering as well as multi-modality volume rendering. Initial work on comparison and validation of algorithm are done. The results and analysis show that the algorithm is promising. Our preliminary work in using this method for medical simulation is also discussed. This method is particularly suitable for PC-based medical simulation where the computation load is high and the raw computing power is limited.