Evaluation of the methods of processing allogenic bone must be considered in order to make an effective choice of graft materials in oral surgery. Allograft materials processed by the tissue banking industry have varying capacities of bone reconstruction. The biological function of processed bone can be affected by many factors, like particle size, processing parameters, and inclusion or exclusion of mineral and moisture. For example, freeze drying step offers a safe and economical means for packaging, shipping, storage, and preservation of homologous bone. Demineralization of cortical bone using hydrochloric acid can produce a uniform demineralized surface with a capacity for osteoinduction. The objectives of this review were to evaluate the processing methods for allogenic bone and to characterize processed materials for grafting. It is important to understand the biological, biomechanical healing of different types of allografts to make the right choice for allogenic bone on each clinical application and to achieve a successful outcome for alveolar bone reconstruction in oral surgery.