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Autografts, allografts, and other bone grafts are current standard strategies for the bone fracture repair. However, integration of each bone graft substitutes can be limited due to the donor-site morbidity, risks of the infection, delayed healing, and others. Production of the clinically relevant bone grafts should ultimately have mesenchymal stem cells (MSCs) and growth factors embedded into the delivery material. MSCs isolated from periosteum have proven their efficiency in the regeneration of complex bone fractures. MSCs of periosteum show robust chondrogenesis and osteogenesis and induce the production of proangiogenic growth factors, stimulating the vascularization and accelerating the regeneration process. Stem cells can be differentiated into the osteoblasts using bone morphogenetic proteins (BMPs), such as BMP-2 and BMP-7.