To compare the healing effect of bone marrow (BM) injection with the effects of autogenic cancellous bone graft (ABG), eighteen female and male New Zealand White rabbits (1 year, 2 kg) were randomly divided into three equal groups and osteotomy and extraction of a 5 mm piece of bone was done in the mid-portion of the right radius of all rabbits. In group A 2 ml of BM was injected in the proximal femur for five consecutive days. Group B received autogenic cancellous bone graft from ileum and group C was the control group and received no intervention. After 45 days, in group A 83% and 17% of rabbits showed good and medium healings, respectively, while in group B, 40% showed good and 60% medium healings. In control group, medium healing was 17% and poor healing was 83%. The mean healing score was significantly higher in BM injection group, compared with B and C groups (17.1, 15.2 and 6, respectively, P < 0.05). BM injection could increase the quality of healing and was much more effective than bone grafting.