Periprosthetic osteolysis (PPO) caused by wear particles is one of the leading causes of implant failure after arthroplasty. Macrophage polarization imbalance and subsequent osteogenic inhibition play a crucial role in PPO. Calycosin (CA) is a compound with anti‐inflammatory and osteoprotective properties. This study aimed to evaluate the effects of CA on titanium (Ti) particle‐induced osteolysis, Ti particle‐induced macrophage polarization and subsequent osteogenic deficits, and explore the associated signalling pathways in a Ti particle‐stimulated calvarial osteolysis mouse model using micro‐CT, ELISA, qRT‐PCR, immunofluorescence and western blot techniques. The results showed that CA alleviated inflammation, osteogenic inhibition and osteolysis in the Ti particle‐induced calvarial osteolysis mouse model in vivo. In vitro experiments showed that CA suppressed Ti‐induced M1 macrophage polarization, promoted M2 macrophage polarization and ultimately enhanced osteogenic differentiation of MC3T3‐E1 cells. In addition, CA alleviated osteogenic deficits by regulating macrophage polarization homeostasis via the NF‐κB signalling pathway both in vivo and in vitro. All these findings suggest that CA may prove to be an effective therapeutic agent for wear particle‐induced osteolysis.