The present investigation was conducted to study the use of local antibiotic and biodegradable bone cement on healing of diaphyseal long bone compound fractures in dogs. The dogs divided into two groups namely Group I, which received local antibiotic treatment and Group II, control group without local antibiotic therapy. The haematological parameters like Total leucocyte count (TLC), differential leucocyte count (DLC), Erythrocyte sedimentation rate (ESR) and serum biochemical parameters such as alkaline phosphatase and C-reactive protein were estimated pre and postoperatively on 0th day, 7th, 14th, 28th, 45th and 60th post-operative day. Blood parameters were significantly higher in group II dogs compared to group I in the post-operative period throughout the research period. The serum alkaline phosphatase values significantly increased from 0th day to14th day and thereafter decreasing to normal values by 60th postoperative day with more in group I. C-reactive protein (CRP) values were high in group II compared to group I.