Avascular necrosis (AVN) of the femoral head is an increasing problem in our society as the life expectancy keeps increasing. As people age, the risk of becoming a victim to osteonecrosis gets higher and higher. However, there is still no a reliable treatment for the early stage of AVN. Bone morphogenetic protein-2 (BMP2), a TGF-β family protein, has been proven to be an effective treatment for bone repair and osteocyte proliferation when applied externally. In this study, we aimed to establish a reliable AVN animal model and to text the effect of BMP2 on treating femoral head with induced avascular necrosis. Our results showed that AVN surgery plus methylprednisolone (MP) treatment has successfully induced the damage of femoral head 4 weeks after treatment. Moreover, BMP2 (1μg/ml) in hydrogel has effectively reduced the femoral damage induced by AVN surgery plus MP treatment by preserving more epiphysis of the femoral head and more trabeculae below the growth plate of the femoral head 8 weeks after treatment. Furthermore, BMP2 in hydrogel attenuated the AVN surgery plus MP treatment induced femoral head damage at doses of 1 and 2 μg/ml. Our results demonstrate that AVN surgery plus MP treatment is a reliable method for inducing femoral osteonecrosis. Also, BMP2 in hydrogel attenuates osteocecrosis induced by AVN surgery plus MP treatment. These findings strongly suggest that BMP2 in hydrogel has a great potential for treating patients suffering from avascular necrosis or other conditions characterized by the osteonecrosis of bones.