To understand the inelastic response of bone, a three-part investigation has been conducted. In the first, unload/reload tests have been used to characterize the hysteresis and provide insight into the mechanisms causing the strain. The second part devises a model for the stress/strain response, based on understanding developed from the measurements. The model rationalizes the inelastic deformation in tension, as well as the permanent strain and hysteresis. In the third part, a constitutive law representative of the deformation is selected and used to illustrate the coupled buckling and bending of ligaments that arise when trabecular bone is loaded in compression.