This document proposes an adaptive morphological filtering approach for LiDAR point cloud data to generate digital elevation models (DEMs). Previous filtering methods require manually selecting parameters that impact results. The proposed approach uses an iterative process to adaptively adjust residual thresholds based on point discontinuities between iterations. It aims to minimize ground point removal errors and non-ground point classification errors. Initial tests on varied terrain show promising results, though discontinuous terrain still poses challenges for removing all type I errors of misclassifying ground points. Further refinement of stopping criteria is needed.