Abstract: A thermally sterilized bone paste useful in the orthopedic arts, for example in the repair of non-union fractures, periodontal ridge augmentation, craniofacial surgery, implant fixation, impaction grafting, or any other procedure in which generation of new bone is deemed necessary, is provided by a composition comprising a substantially bioabsorbable osteogenic compound in a matrix of 11-19%, and preferably about 15-19% (w/w) or thermally sterilized gelatin. In various embodiments, the osteogenic compound is selected from (i) demineralized bone matrix (DBM); (ii) bioactive glass ceramic, BIOGLASS®, bioactive ceramic, calcium phosphate ceramic, hydroxyapatite, hydroxyapatite carbonate, corraline hydroxyapatite, calcined bone, tricalcium phosphate, or like material; bone marrow extracts, vascular proliferation or regeneration growth factors, bone morphogenetic protein, TGF-&bgr;, PDGF, or mixtures thereof, natural or recombinant; and (iv) mixtures of (i)-(iii).