A twenty-three-year-old man who was treated by skeletal traction for open subtrochanteric fracture from gun-shot injury complained of a pulsating mass with bruit at the fracture site. Initially we ligated the deep femoral artery on the base of angiographic findings. On angiogram repeated 3 months later, complete resolution of bilobulate pseudoaneurysm was confirmed. So, the cavity at the fracture and false aneurysm site was filled with iliac bone graft which resulted in complete fracture union. We conclude that initial arterial ligation followed by bone graft is a good alternative treatment of false aneurysm at the fracture site.