This work presents a novel method for 3-D path-following and path-tracking of Autonomous Underwater Vehicles (AUVs) using the concept of a Virtual Reference Point (VRP) and a kinematic guidance principle. The origins of the along-, cross-and vertical-track errors are proven globally exponentially stable (GES) using Lyapunov stability analysis. The kinematic guidance law exploits the design flexibility of a user-defined VRP in conjunction with a feedback linearizing controller. In addition, a novel concept called the Handy Matrix is introduced and applied to shape the kinematic equations such that the AUV's nonactuated degrees of freedom (DOFs) can be controlled in a 3-D path-following scenario. The case study considers the Remus 100, a torpedo-shaped underactuated AUV, performing a 3-D path-following maneuver. The computer simulations show that the kinematic guidance law shows excellent tracking performance and stability even in the presence of ocean currents and white measurement noise.