Objectives: The purpose of this study was to evaluate, by histological examination, the capability and mechanism of subperiosteal bone formation, using human osteoinductive bone graft in experimental animals. Materials and Methods: In this experimentent, four rabbits, 35-40 days aged, were used. In these animals, pieces 7x7x3 mm of human GRAFTON flex demineralized bone matrix were implanted subperiostealy, over the occipital bone, in the calvarial area, after moistening with normal saline for about 5-6 minutes. 3 and 4 weeks after the operation, the experimental animals were sacrificed and histological examination of the implanted sites was followed. Tissue samples were decalcified for 2 weeks and proceed in parafin blocks. Histological sections were stained with Haematoxyline-Eosine and observed under light microscope. Results: In the animals sacrificed 3 weeks after implantation, osteogenic differentiation was observed.Active osteoblasts and Osteoprogenitor cells of the periosteum were differentiated into active osteoblasts which formed thin layers around the implants or where dispersed between them.4 weeks after the implantation, formation of osteoid was obvious around some of the implants which were progressivily absorbed. Conclusion: Our results suggest that human demineralized bone matrix GRAFTON can be used to induct bone formation in rabbit model.