Vertebral compression fractures represent a major health problem of the aging society and lead to high local deformation and compaction of the trabecular bone. These fractures mainly occur when the bones of the spine break due to osteoporosis. Osteoporosis is a skeletal disease reducing the bone mass and deteriorating the microarchitecture of the bone. It increases the fracture risk resulting in mortality, morbidity and high socio-economical cost and consequently reduces the quality of life. Therefore, it is highly important to establish sensitive and reliable diagnostic tools to accurately predict the ultimate strength of the bone and susceptibility to fracture. The goal of this thesis was to develop and validate a computed tomography-based homogenized finite element (CT-based hFE) model for bone enabling more accurate predictions of the vertebral fracture incident, the failure pattern and densification of trabecular bone in moderate to large compression. The constitutive model was based on the bone micro-architecture: volumetric bone density (BV/TV) and trabecular orientation (fabric anisotropy), as they mainly determine the overall mechanical response of bone. In the first study, the current state of the art of trabecular bone modeling was extended to large compressive strains by including a densification mechanism. A classical rateindependent elastic-plastic material model coupled with a scalar isotropic damage function was developed for trabecular bone. The damage variable was formulated using a local damage approach which is responsible for stiffness reduction after initial yield. The post-yield hardening and softening behavior of trabecular bone was controlled using a prescribed function, whose material constants were identified based on the experimental force-displacement data of 37 vertebral sections available from a previous work. The densification mechanism was introduced by an additive non-linear elastic spring activated beyond a certain threshold of negative volumetric change. To improve the convergence issue of the numerical model due to strain-softening, a viscoplastic regularization approach was added to the rate-independent constitutive law of trabecular bone. The simulations of the 37 vertebral sections were qualitatively and quantitatively analyzed against the experimental results and showed high correlation for dissipated energy during the deformation (with a concordance correlation coefficient ρC = 0.912). In the second study, the developed local continuum damage-plastic model of trabecular bone was regularized by an implicit gradient non-local damageplastic theory to avoid mesh-dependency of the model due to softening. A mesh sensitivity analysis was performed using 16 vertebral trabecular bone biopsies meshed by three different element sizes. The non-local regularization substantially reduced the mesh dependency. In the last study, a novel experimental setup using stepwise loading technique inside a high-resolution peripheral quantitative computed tomography (HR-pQCT) system was designed. For this purpose two compression devices were designed and manufactured. The three-dimensional deformation of 13 vertebral bodies were monitored and their reaction force were recorded. The load cell integrated into each compression device allowed for measuring the reaction force of the specimen and the µCT images provided the detailed information of BV/TV and fabric anisotropy. The experimental results were used to evaluate the accuracy and the potential of the non-local damage-plastic model in predicting the localization pattern of vertebral body and the failure and densification of trabecular bone under large compression. In conclusion, the achievements of this work provided a CT-based finite element model for the bone capable of predicting the fracture occurrence of vertebral body and the trabecular bone localization and densification in large compression. However, it is suggested that despite the recognized potential of the model, substantial challenges remain to be met for more reliable prediction of bone failure subjected to large deformations.