Aim of the study. To estimate and compare the cost implications of the first attempt of treatment of tibial fracture non-unions treated with either autologous bone grafting or BMP-7. Materials and methods. Patients who were successfully treated for fracture non-unions between 2001 and 2005 were included. Exclusion criteria included infected non-union, children, malignancy, or chronic debilitating disease. The decision to use BMP-7 or autogenous bone graft was guided by the defect size and the surgeon's preferred method of treatment. Group 1 (n = 12) received iliac crest bone grafting (ICBG) and group 2 (n=15) received recombinant human Bone Morphogenetic Protein-7 (BMP-7). The total costs incurred during treatment including hospital stay, implants, theatre costs, drains, antibiotics, investigations and outpatient appointments were documented and analysed. Results and costs. (Average £ per patient) Average age was 41.4 and 38.52 years in group 1 and 2 respectively. Total follow up was 2.84 and 2.4 years for group 1 and 2 respectively. Average hospital stay was 10.66 and 8.66 days; time to union was 12.3 and 7.6 months; hospitals costs were £2,133.6 and £1,733.33; theatre costs were £2,413.3 and £906.67; implant costs were £696.4 and £592.3; radiology costs were £570 and £270; outpatient costs were £495.8 and £223.33; BMP7 costs were 3002.2; other costs were £451.6 and £566.27; and the total cost of treatment was £6,830.73 and £7,294.1 in group 1 and 2 respectively. Conclusion. In this study, the average cost of treatment of a tibial fracture non-union with autologous bone grafting was 6.7 % higher than the cost incurred with BMP7. Most of the costs incurred (41.1 %) in the BMP7 group were related to the actual price of BMP7. The cost difference between the two groups of patients wasn't statistically significantly higher