Repair of osteochondral defects created in rabbit femoral trochlea were studied using a water-soluble sulfated p-GlcNAc formulation, (Marine Polymer Technologies, Danvers, MA, USA). After 12 weeks of healing empty defects were compared to defects filled with sulfated p-GlcNAc sponge alone and sulfated p-GlcNAc sponge seeded with autologous chondrocytes. The chondrocyte seeded sponge provided the best healing of both cartilage and subchondral bone. The sulfated p-GlcNAc sponge alone did not provide as good healing as the chondrocyte seeded sponge, but healing was still superior to that of the empty defect. This study supports the use of p-GlcNAc sponge to augment healing of osteochondral defects in animal models.