We have successfully developed novel “chelate-setting apatite cement” using hydroxyapatite (HAp) particles surface-modified with inositol phosphate (IP6) . The HAp particles surface-modified with IP6 were mixed with water (HAp/water ratio = 1.00/0.50[w/w]) to fabricate apatite cements. We have examined the biocompatibility of the apatite cement using the culture system of MC3T3-E1 cells and the rabbit model. The cell-culture test using MC3T3-E1 cells has shown that the apatite cement has noncytotoxicity. This cement has been implanted into tibiae of rabbits. When tissue response was examined histologically up to 24 weeks, new bone formation was observed around the surface of the cement. The present work demonstrates that this apatite cement is useful as a material for artificial bone grafting.