Objective: To observe the osteoinductive activity of demineralized bone matrix (DBM) and deprotenized bone (DPB) made from human avascular necrotic femoral head. Methods: The femoral head was cut into pieces with the size of 3 mm×3mm×5 mm, which were made into DBM and DPB. These two kinds of biomaterials were cocultured with human bone mesenchymal stem cells (hBMSCs). Monolayer cells without biomaterials were cultured as control. Proliferative activity of hBMSCs was evaluated on days 1, 3, 5, 7 and 14. The concentration of alkaline phosphatase (ALP), osteocalcin (OC), and Ca2+ were detected on days 1, 7, 14 and 21. Results: Cells cultured in DBM showed higher proliferative activity than did in DPB and monolayer cells (F= 39.773, P<0.01). DBM and DPB also had osteoinductive activity. The concentrations of ALP (F=93.162, P<0.01), OC (F=236.852, P<0.01),Ca2+(F=80.711, P<0.01) of DBM group were significantly higher than that of DPB and control groups. Conclusions: In vitro, DBM and DPB made from avascular necrotic femoral head have osteoinductive activity when cocultured with hBMSCs, and the former is stronger than the latter.