Introduction: This investigation was done to examine the influence of bone matrix gelatin on bone induction in WNZ male rabbit. Materials and methods: The rabbits were purchased from Razi institute and bone matrix gelatin (BMG) was prepared from the long bones according to M.Urist method. Using a dentistry drill, a hole with 3.5mm diameter was made at a distance of 2.5cm below the tibial medial condyle. In 6 of these animales (experimental group) 2mg BMG was implanted at operation site, but in the six other (control group) no BMG were used. The animals were killed by over dose chloroform at days 40 and 60 after surgery. The samples were processed histologically and studied by light microseopy. Also, the induced new compact bone by BMG was compared with the normal compact bone. Results: Histological study showed that in the experimental group, a typical new compact bone was induced but in the control group was not seen. Also, the induced new compact bone in the experimental group was immature in comparison with normal compact bone. Conclusion: According to the results of the present investigation the BMG is one of the important chemical materials for bone induction.