A system and method for 3D propagation modelling for planning of a radio network, is disclosed. In the present invention, automatic tuning of propagation path loss parameters of a Continuous Wave (CW) based 3D propagation model for LOS (line of sight) and NLOS (non-line of sight) radio transmissions in a first geographical area, is performed. Further, in the present invention, 3D propagation models for remaining geographies having similar geographical area and clutter types as the first geographical area, are generated without performing any drive test while compensating the propagation path loss parameters of the generated model using periodically measured user equipment (UE) data. The generated 3D models may be updated dynamically as the 3D models are developed based on UE data updated from time to time.