An osteoinductive bone graft substitute including an osteoinductive calcium phosphate component retained within a collagen scaffold, wherein the collagen scaffold is formulated to maintain the osteoinductivity of the calcium phosphate component while also exhibiting the following characteristics (1) ability to absorb bone marrow and/or other physiologic liquids, (2) compression resistance; (3) moldability; (4) retaining the calcium phosphate component during and after manipulation of the collagen scaffold and (5) fibrous collagen matrix that retains but does not occlude the osteoinductive calcium phosphate component.