Demineralized bone matrix (DBM) is one of the standard biomaterials used to fill surgical bone defects in general orthopedic procedures. However, current DBM products come in the form of powder or viscous solutions that fail to mimic the natural hierarchical structure of bone while also using large amounts of valuable material. To overcome this, compact fibrous DBM/polymer (fDBM) composites were prepared via electrospinning. Then, by exploiting the catalytic decomposition of hydrogen peroxide, oxygen pockets are formed in the scaffold imparting it with a hierarchical porous structure similar to bone (Op-fDBM). These pockets created by bubbles of oxygen help give the scaffold a mechanically stable shape while the incorporated DBM supports cell adhesion and growth. In vivo evaluations reveal that fDBM increased bone volume by 41.7 % while Op-fDBM increased bone volume by 68.6 %. Significant increases in regenerated bone volume with the use of minimal amounts of DBM in fiber form go to show the great potential of this work in the field of bone regeneration.