Tissue engineering approaches to regenerate bone stock in revision total hip replacements could enhance the longevity of the implant and benefit the quality of the patient's life. This study investigated the impaction of allograft with mesenchymal stem cells in an ovine hip hemiarthroplasty model. In total, 10 sheep were divided into two groups with 5 sheep in each group. The groups were: 1) mesenchymal stem cells mixed with allograft; 2) allograft only as a control. Ground reaction force was assessed for limb function and showed that there was no significant difference in the recovery for animals in different groups. The amount of bone regenerated around the hip replacement was assessed using un-decalcified histology. The results showed that the stem cell group generated significantly more new bone at the implant allograft interface and within the graft than the control group. The results from this study indicate that the use of stem cells on an allograft scaffold increases bone formation indicating that the use of stem cells for revision hip arthroplasty may be beneficial for patients undergoing revision surgery where the bone stock is compromised.