An algorithm for automated identification of undercuts and the creation of the lifter subassembly in plastic injection mould design is described. The algorithm is suitable for injection mould design in a 3D mode. The input to the software is a 3D part model, parting direction and lines, and a mould-base. The software then generates the lifter subassembly and places it properly in the mould-base. This is accomplished in four steps. First, the so-called virtual core and cavity are generated without considering any undercuts. Undercut faces on the part are then identified and undercut groups are formed. Secondly, the releasing direction of each undercut group is found. Thirdly, for each undercut group, a lifter head based on its releasing direction is created. Fourthly, other standard components of a lifter assembly are retrieved and attached to the corresponding lifter head within the mould-base at the correct location. A case study is presented that illustrates the efficacy of the technique for the automated design of lifters to fulfil a real industrial requirement.