Objective: To compare the amount of new bone produced by Gusuibu in collagen grafts to that produced by bone grafts and collagen grafts. Methods: Twenty bone defects were created in the parietal bone of 14 New Zealand White rabbits. In the experimental group, 5 defects were grafted with Gusuibu extract mixed with absorbable collagen sponge, 5 defects were grafted with autogenous endochondral bone. In the control groups, 5 defects were grafted with absorbable collagen sponge alone (active control) and 5 were left empty (passive control). Animals were killed on day 14 and the defects were dissected and prepared for histological assessment. Serial sections were cut across each defect. Quantitative analysis of new bone formation was made on 150 sections using image analysis. Results: A total of 24% and 90% more new bone was present in defects grafted with Gusuibu in collagen grafts than those grafted with bone and collagen respectively. No bone was formed in the passive control group. Conclusion: Gusuibu in collagen grafts have the effect of increase new bone formation locally and can be used as a bone graft material.