-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 R1UQYGFj3ZFgkmKZWj3c4jI9zhEaNxRFpEo/E+vVFJ9c07ZdxkU8hUkuZHpT1KF0
 pidkK2J/jYNh0nCif1vfrQ==

<SEC-DOCUMENT>0001209191-07-071663.txt : 20071226
<SEC-HEADER>0001209191-07-071663.hdr.sgml : 20071225
<ACCEPTANCE-DATETIME>20071226132701
ACCESSION NUMBER:		0001209191-07-071663
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071220
FILED AS OF DATE:		20071226
DATE AS OF CHANGE:		20071226

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OSTEOTECH INC
		CENTRAL INDEX KEY:			0000874734
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				133357370
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		51 JAMES WAY
		CITY:			EATONTOWN
		STATE:			NJ
		ZIP:			07724
		BUSINESS PHONE:		7325422800

	MAIL ADDRESS:	
		STREET 1:		51 JAMES WAY
		CITY:			EATONTOWN
		STATE:			NJ
		ZIP:			07724

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Owusu-Akyaw Sam
		CENTRAL INDEX KEY:			0001293589

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19278
		FILM NUMBER:		071325965

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		732-542-2800

	MAIL ADDRESS:	
		STREET 1:		C/O OSTEOTECH, 51 JAMES WAY
		CITY:			EATONTOWN
		STATE:			NJ
		ZIP:			07724
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>bny45102_bny1so.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-12-20</periodOfReport>

    <issuer>
        <issuerCik>0000874734</issuerCik>
        <issuerName>OSTEOTECH INC</issuerName>
        <issuerTradingSymbol>OSTE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001293589</rptOwnerCik>
            <rptOwnerName>Owusu-Akyaw Sam</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O OSTEOTECH</rptOwnerStreet1>
            <rptOwnerStreet2>51 JAMES WAY</rptOwnerStreet2>
            <rptOwnerCity>EATONTOWN</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>07724</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>President and CEO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Restricted Stock Units</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-12-20</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>9090</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F2"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $.01</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>9090</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>9090</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Restricted Stock Units</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F3"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-12-20</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>25910</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F4"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F4"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $.01</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>25910</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>25910</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">This Grant is made pursuant to the Issuer's 2000 Stock Plan.  Each restricted stock unit represents a contingent right to receive one share of Common Stock.  The Reporting Person receives one share of Common Stock for each restricted stock unit that vests.</footnote>
        <footnote id="F2">The units vest in four equal tranches on December 20, 2008, December 20, 2009, December 20, 2010 and December 20, 2011, respectively.</footnote>
        <footnote id="F3">This Grant is made pursuant to the Issuer's 2007 Stock Incentive Plan.  Each restricted stock unit represents a contingent right to receive one share of Common Stock.  The Reporting Person receives one share of Common Stock for each restricted stock unit that vests.</footnote>
        <footnote id="F4">The units vest in their entirety on December 20, 2010, subject to the satisfaction of a vesting condition linked to the Issuer's earning per share (&quot;EPS&quot;) for fiscal year 2008.  If actual EPS for fiscal year 2008 is less than 90% of the specified EPS target (as determined by the Board), none of the RSUs will vest.  For EPS results between 90% and 160% of the specified EPS target, the RSUs will vest in proportion to the level of EPS achieved, with a minimum vesting percentage of 60% and a maximum vesting percentage of 150% of the total RSUs granted herein.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Mark H. Burroughs, Attorney-in-Fact</signatureName>
        <signatureDate>2007-12-21</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----