A biocompatible composite material comprising a substrate having a glass-hydroxyapatite ceramic layer disposed thereon, and optionally having an intermediate glass layer between the substrate and the layer. The glass-hydroxyapatite ceramic layer comprises a continous glass phase having a hydroxyapatite ceramic dispersed therein, said hydroxyapatite ceramic having a calcium/phosphorous molar ratio of 1.50 to 1.75, wherein said hydroxyapatite ceramic is comprised mainly of hydroxyapatite. The surface portion of the layer is in a roughened state having voids and having the hydroxyapatite ceramic exposed. The composite material may be produced by a method comprising applying a blend of a powdery glass with a hydroxyapatite ceramic to the surface of a substrate with or without a glass layer disposed thereon, firing the resulting coated substrate and subjecting the fired coated substrate to an etching action with an acid. The composite material is useful as a bone substitute material for the reconstruction of bone defects.