Background: The fetal amniotic membrane is a biological graft with unique qualities which all lead to wound protection, reducing discomfort, and achieving adequate epithelialization. Materials and Methods: In this animal study, the second and third premolars of the mandible of 4 dogs were extracted. After 4 weeks, 20 mm of mandibular premolar site area were resected on both sides. The created defects on both sides were filled with xenograft. On one side, an amniotic membrane was placed over the graft particles and the reflected flap was sutured. The amount of bone formation in the defects was measured after 4 weeks for two of the dogs and after 8 weeks for the other two, using a caliper. Three histopathological samples from both sides were taken. The collected data were subjected to statistical analysis (Wilcoxon signed-rank and paired sample t -test) using SPSS software at a significant P = 0.05. Results: In the test group, the quantity of bone was 56.81, whereas in the control group bone quantity was 37.38 with statistically significant differences ( P = 0.025). In the amniotic membrane group, the inflammation intensity after the graft procedure was moderate (50%) in comparison to the control group where the inflammation was severe (62.5%) ( P = 0.041). Conclusion: The amniotic membrane can induce positive osteoinduction effects and be helpful in repairmen of bone defects such as the natural periosteum.