Failures of orthopaedic procedures that use morselized cancellous bone (MCB) graft for load bearing are often due to gross displacement within the graft material. For this reason the mechanical behavior of MCB must be better understood. Our purpose is to present a detailed testing methodology for the mechanical characterization of MCB, and to illustrate how this methodology can be used to study the influence of water and fat content. Complete one-dimensional consolidation testing was performed on bovine cancellous bone processed to represent MCB typically used in surgery (52% water, 31% fat). The one-dimensional consolidation strain under a stress of 1.09MPa was 30.9% and the confined modulus was 8.0MPa. The coefficient of consolidation (rate of consolidation) was 2. 2x10(-5)cm(2)/s and the coefficient of secondary strain (steady-state creep rate) was 1.9%. While reducing the water content alone had some influence on properties, reducing the fat content improved both the static and dynamic behavior. A sample of MCB which had fat intentionally minimized and a lower overall moisture content (56% water, 5% fat) demonstrated 23.1% strain, a confined modulus of 9.6MPa, a coefficient of consolidation of 3.4x10(-3)cm(2)/s, and a coefficient of secondary strain of 0.9%. The test methods described in this technical note can be used to evaluate the influence of fluid content on the mechanical behavior of MCB.