The melodramatic increase of computer usage has given rise to many security concerns. One major security concern is Authentication; process of validating who you are to who you claimed to be. Authentication provides more security to the system. Many existing authentication schemes such as textual password, graphical password etc. are available, each one having its own drawbacks and limitations. This paper introduced a new authentication technique, called 3D Password that overcomes the drawback of previously existing authentication schemes. The 3D Password is multi-factor and multipassword authentication techniques that consist of 3D virtual environment containing real time object scenarios. 3D virtual environment is the user interface that looks like same as real time environment but is not actual real time environment. Compared to other authentication techniques 3D Password is more advanced and secure, as it is easy to use and difficult to break. This paper also focuses on explaining what is 3D Password?, how to create 3D password, working of 3D Password and some design principles for designing 3D virtual environment.