We extend LeVeque’s wave propagation algorithm, a widely used finite volume method for hyperbolic partial differential equations, to a third-order accurate method. The resulting scheme shares main properties with the original method, i.e., it is based on a wave decomposition at grid cell interfaces, it can be used to approximate hyperbolic problems in divergence form as well as in quasilinear form and limiting is introduced in the form of a wave limiter.