This paper proposes a new 3D propagation algorithm for the depth image-based rendering problem with multiple color and range cameras at arbitrary positions. The proposed algorithm efficiently renders novel images at arbitrary virtual views by propagating all available depth information from range cameras to color cameras, and then all available depth and color information from color cameras to the virtual views. Furthermore, the algorithm significantly enhances the propagated depth images by applying a new occlusion removal method and a new depth-color bilateral filtering. The paper also describes the parallelism structure of our algorithm and outlines a mapping onto massively parallel architectures such as general-purpose graphics processing units (GPGPUs). Experimental results show that the proposed algorithm provides good rendering quality while staying within computational bounds for real-time applications.