Fluoroscopy-based three-dimensional seed localization as a component of intraoperative dosimetry for prostate brachytherapy is an active area of research. A novel adaptive-grouping-based reconstruction approach is developed. This approach can recover overlapped seeds that are not detected from the fluoroscopic images. Two versions of the adaptive-grouping-based reconstruction approach are implemented and compared to an epipolar geometry-based seed reconstruction technique. Simulations based on nine patient datasets are used to validate the algorithms. A total of 2259 reconstructions is performed in which different types of error such as random noise in seed image locations and ambiguities in projection geometry are incorporated. Among those reconstructions, nine of the cases with overlapping seeds and the different types of error are performed. It is demonstrated that the adaptive-grouping-based reconstruction method is more accurate than the epipolar geometry method and allows faster reconstruction. At a random noise level of 0.6 mm, the mean distance error in reconstructed seed locations is approximately 1.0 mm for one of the relevant cases examined in detail. The best adaptive-grouping-based approach successfully recovered overlapped seeds in the majority of simulated cases (89%), with the remainder of cases generating one false positive seed. Phantom validation is also performed, and overlapped seeds are successfully recovered with all 92 seeds correctly localized and reconstructed. The mean distance error between segmented seed images and projected seeds is 0.5 mm in the phantom study.