A malleable demineralized bone composition consists of cortical bone made from a first portion and a second portion. The first portion and second portion of cortical bone is made from cut pieces freeze dried then ground into particles and demineralized then freeze-dried. A volume of the second portion is placed in a solution of sterile water to create a mixture, the water volume being seven times the volume of the second portion, the mixture is autoclaved under heat and pressure to form a gelatin, and the first portion is mixed with the gelatin to form a malleable putty or paste.
