We develop a local, implicit crack tracking approach to propagate embedded failure surfaces in three-dimensions. We build on the global crack-tracking strategy of Oliver et al. (Int J. Numer. Anal. Meth. Geomech., 2004; 28:609–632) that tracks all potential failure surfaces in a problem at once by solving a Laplace equation with anisotropic conductivity. We discuss important modifications to this algorithm with a particular emphasis on the effect of the Dirichlet boundary conditions for the Laplace equation on the resultant crack path. Algorithmic and implementational details of the proposed method are provided. Finally, several three-dimensional benchmark problems are studied and results are compared with available literature. The results indicate that the proposed method addresses pathological cases, exhibits better behavior in the presence of closely interacting fractures, and provides a viable strategy to robustly evolve embedded failure surfaces in 3D.