Particulate bone and structural bone, more specifically decalcified bone from endosteum having osteoinductive capacity and methods for their isolation and production are provided, more specifically, decalcified bone preparations derived from endosteal layer of bone are provided. Compositions formulated with material from endosteal layer of bone are provided along with preparation and methods of using decalcified endosteal compositions are disclosed. Endosteum is avascular and areolar in distinction to bone marrow which fills the canal. Because of its structure and anatomic position, endosteum is difficult to isolate and recognize, and therefore not regarded as an important constituent of allograft materials. One embodiment of the present invention allows for recognition and isolation of endosteum.
