In this study, the biocompatibility and the osteogenic features of a new iron-modified alpha-tricalcium phosphate (IM/alpha-TCP) and calcium sulphate dihydrate (CSD) biphasic cement (IM/alpha-TCP/CSD-BC) have been investigated in terms of the in vivo cement resorption, bone tissue formation and host tissue response on sheep animal model. Histological evaluation performed on undecalcified cement-bone specimens assessed the in vivo behaviour. It has been shown that the new IM/alpha-TCP/CSD-BC has the ability to produce firm bone binding in vivo (i.e. bioactivity). Qualitative histology proved cement biocompatibility, osteoconduction and favourable resorption, mainly through a macrophage-mediated mechanism. The results showed that the new cements have biocompatible and osteogenic features of interest as possible cancellous bone replacement biomaterial for minimally invasive spinal surgery applications.