Use of the Masquelet technique in the hand is uncommon, particularly for cases complicated by osteomyelitis. This case report describes a patient who was advised to proceed with digital amputation following the traumatic segmental bone loss with a non-salvageable distal interphalangeal joint surface complicated by osteomyelitis but refused amputation and requested alternative treatment. We suggested and performed the Masquelet procedure and arthrodesis to salvage the digit. The first stage consisted of surgical debridement and placement of an antibiotic cement spacer, and the second stage included the replacement of the antibiotic cement spacer with an iliac crest autograft and arthrodesis eight weeks after the primary procedure. The Masquelet technique led to the resolution of osteomyelitis, successful osseous union, finger ray salvage, and distal interphalangeal joint arthrodesis.