One embodiment of the invention is 
demineralized bone putty composition comprises: (1) 
demineralized bone matrix (
DBM); and (2) a 
lipid fraction selected from the group consisting of 
lecithin and a mixture of 
lecithin and triglycerides containing unsaturated fatty acids. The 
putty composition is moldable, biocompatible, slowly resorbable, insoluble in tissue fluids, and non-extrudable. The composition delivers a biologically active product to animals and humans that will enhance 
bone formation at sites where bone is lost, deficient, or present in suboptimal amounts. The composition can further comprise 
calcium, an 
antioxidant such as 
Vitamin E or 
Vitamin C, or a hydrophilic 
polymer such as methylcellulose, a methylcellulose derivative, 
carboxymethyl cellulose, or hydroxypropyl methylcellulose. A second embodiment of the invention is a 
demineralized bone paste composition comprising: (1) about 15% to about 75% of an 
emulsion carrier, such as an aqueous phase; and (2) a bone-material-containing phase comprising: (a) 
demineralized bone matrix (
DBM); and (b) an emulsifier component that is compatible with lipids. This 
bone paste composition is moldable, biocompatible, slowly resorbable, miscible with 
bone graft materials, soluble or partially soluble in tissue fluids, and extrudable.