The CALICE collaboration is developing highly granular calorimeters optimized for Particle Flow Algorithms (PFA).
After having demonstrated the potential of these calorimeters in a first set of prototypes, a next generation of prototypes is under development that addresses full system requirements such as compactness and low power consumption. Improvements on the analysis and reconstruction of electromagnetic and hadronic showers is discussed along with tests on data of the performance of the Particle Flow Paradigm.