Stress shielding of the femur is known to be a principal factor in aseptic loosening of hip replacements. This paper considers the use of a hollow stemmed hip implant for reducing the effects of stress shielding, while maintaining acceptably low levels of stress in the cement. Using finite element modelling, the stresses in the proximal femur using different shapes of hollow stem were compared with those produced using comparable sizes of solid stem with different values of elastic modulus. A reduction in stress shielding could be achieved with a hollow stem. A cylindrical hollow stem design was then optimised in order to control the maximum allowable stress in the cement, the minimum allowable stresses in the bone, and a combination of the two. The resulting stems achieved an increase in proximal bone stress of about 15% for the first case and 32% for a model using high strength cement, compared with solid stems of the same nominal outside diameter. The gains of these theoretically optimised designs dropped off rapidly further down the stem. Linearly tapered hollow stems reached a 22% gain, which could be a good compromise between acceptable cement stresses and ease of manufacture.