In the development of a new wireless communications system, a versatile and accurate radio channel for indoor communications is needed. In particular, the investigation of radio transmission into buildings is very important. In this letter, we present an improved three-dimensional electromagnetic wave propagation prediction model for indoor wireless communications that takes into consideration building penetration loss. A ray tracing technique based on an image method is also employed in this study. Three-dimensional models can predict any complex indoor environment composed of arbitrarily shaped walls. A speed-up algorithm, which is a modified deterministic ray tube method, is also introduced for efficient prediction and computation.