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SummaryBone and cartilage transplantation have included autogenic, allogenic, and xenogenic tissues. Non-vascular cortical bone grafts are incorporated through a process of resorption, vascular invasion, and new bone deposition. Cancellous grafts are incorporated through a process of bone deposition followed by resorption. A variety of proteins, enzymes and enzyme inhibitors, collectively termed osteogenins, have been identified to have osteo-inductive activity. The incorporation of cartilage grafts differs from that of bone in several ways, largely due to differences in nutrition of the graft and biology of the incorporation process. The completeness of allograft incorporation is restricted in part by the immune response due to genetic disparity between donor and recipient tissues. Effective methods of sterilizing the graft, to prevent transmission of pathogens from donor to recipient, are important. Veterinary applications of graft material are expanding. While autogenous cancellous grafts to augment fracture repair remain the area of greatest use, segmental allografts for repair of large fracture defects in small animals are also utilized. The application of cartilage and osteochondral grafts in horses represent another area of active research.The use of bone and cartilage transplantation in veterinary surgery continues to expand. What follows is a review of the biologic principles relating to graft incorporation, the effects different storage and handling techniques have on graft incorporation, and the clinical relevance of current research to veterinary application of bone and cartilage transplantation.