A spacer is used in a damaged bone to provide a contact surface that complements the shape of a cooperating bone so a corrective arthrodesis may be performed across the two bones. The spacer further may restore the length and, preferably, the shape of the damaged bone, particularly when a discrete bone segment has been removed. The spacer has a base having the length and shape of the removed bone segment, and a stem attached to the base for securing the spacer to the damaged bone. The spacer may have one or more fixation channels for receiving fixation devices, such as k-wires or bone pins. In a method of using the spacer, gradual osteotomies are performed on the damaged bone until bleeding bone is obtained. A stem hole is drilled to receive the stem, and the spacer is inserted and aligned with the damaged and cooperating bones.