Tureta and his colleagues have stressed the important role that vessels play in osteogenesis. Numerous arthors attempted to provide new bone formation by placing vascular pedicles into the bone. Some reports are convining, but experimental model and histological investigation leave something yet to learn. We conducted an experiment to demonstrate the feasibility of using a vascular bundle to create new bone formation in medullary canal. Vasculsr bundle of the femoral artery and vein was transplanted in same side of the femoral canal of rabbits. The transplanted vascular bundle was studied histologically for eight weeks. At 3 weeks transplanted artery started proliferation of intima and media, and its lumen was obliterated completely at 6 weeks. Transplanted vein collapsed from begining, and didn't involve in revascularization and new bone formation. At 2 weeks the proliferation of capillaries promoting revascularization originated from the adventitia of the transplanted artery, and peaked at 6 weeks. New osteoid appeared around the transplanted vessel at 2 weeks, and surrounded the entire vessel in 5 weeks, and had no more progression in amount at 6 weeks. Cortical hypertrophies showed in the vascular bundle transplanted group from 3 weeks. Examination of control group revealed no sign of new osteoid formation around the hole during the whole study period.