The authors retrospectively evaluated the clinical records and radiographs obtained from 41 patients who had giant cell tumor of bone and who were treated by local resection and allograft replacement. Postoperative complications developed in 41% of the patients. However, the eventual clinical outcome was considered to be satisfactory in 85% of all cases. There were no instances of tumor recurrence, and surprisingly, postoperative arthritis was not a major problem. The major complications encountered were infection and allograft fracture; bone infection accounted for most of the clinical failures. All infections were associated with the increasing soft-tissue swelling and bone resorption detected on radiographic studies. Other radiographic parameters that were associated with an increased rate of complications included osteopenia, increased periosteal reaction, and decreased bone formation at the host-donor junction site. The clinical outcome was distinctly less favorable in those cases in which the patient had had a pathologic fracture or a previous resection, or in whom the graft was implanted at the distal radius.