Abstract: The present invention involves compositions for use as granular bone replacements. The compositions of the present invention are comprised of hyaluronic acid esters or salts of hyaluronic acid in association with a pharmacologically active compound wherein the molecular weight of the hyaluronic acid is below 250,000 and either artificial or natural bone granules. The present invention further involves a method of promoting the growth or repair of damaged or defective bones in either humans or animals using the compositions of hyaluronic acid derivatives and bone granules.