The adaptive MIP ray casting system first fragments a 3-D dataset into multiple sub-volumes and constructs an octree data structure with each sub-volume being associated with one node of the octree data structure. The system then establishes a 2-D image plane and selectively launches a plurality of rays towards the 3-D dataset, each ray adaptively interacting with a subset of the sub-volumes and identifies the maximum data value along the ray path. The maximum data value is then converted into a pixel value on the 2-D image plane. Finally, the system interpolates pixel values at those locations where no pixel value is generated by ray casting and thereby generates a 2-D image of the 3-D dataset.