We present the development of a bone drilling simulation system to simulate on a PC the drilling operations commonly used in orthopedic surgery. A drilling force model is obtained by performing regression of measured drilling force versus process and material parameters. A haptic rendering algorithm consisting collision detection and force generation is also developed. The overall simulation of the developed system runs two threads in parallel: (1) haptics thread, which obtains the position and orientation of the virtual drill and provides force feedback and (2) graphics thread, which is dedicated to real-time rendering of volumetric data.