A bone graft is a surgical procedure used to fix problems associated with bones or joints. Bone grafting or transplanting of bone tissue is beneficial in fixing bones after trauma, problem joints, or growing bone around implanted devices, such as total knee replacement (TKR).he two most common types of bone grafts are: 1  allograft: this graft uses bone from a deceased donor or a cadaver that has been cleaned and stored in a tissue bank. 2  autograft: graft made from a bone inside a patient’s body, such as the ribs or hips.