The invention disclosed herein relates to methods and compositions useful for the production of composites for bone implantation. The invention includes methods for production of lyophilized bone fragments seeded with lyophilized stem cells, mesenchymal stem cells, bone marrow stem cells, periosteal cells or osteocytes that are derived either from the recipient of the bone implant or from allogeneic sources. The methods of the invention comprise production of bone implant material including the steps of cutting solid bone into fragments, decellularizing the bone fragments, seeding stem cells, mesenchymal stem cells, bone marrow stem cells, periosteal cells or osteocytes onto the decellularized bone fragments and lyophilizing the complex of bone fragments and cells. The stabilized bone matrix and complex of bone and cells increases the ease of transport, storage and reconstitution of bone and cells for bone implantation.
