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The beneficial effect of a composite autologous red bone marrow and bone graft is well documented in experimental animals. In an attempt to improve the osteogenic potential of xenogeneic bone for clinical use, xenogeneic bone was combined with autologous red marrow and used in 110 bone grafting operations in 98 patients. Hydrogen peroxide-macerated (Kiel) bone was immersed in autologous red marrow obtained by iliac crest punctures. The results were excellent in conditions covering a wide range of indications for bone grafting. The results of treatment of pseudarthroses were most satisfactory. Deproteinized xenogeneic bone serves as a bank bone implant when impregnated with living autologous marrow or placed in a bed of bleeding cancellous bone.