Intramedullary nailing is an established fixation method in fracture treatment as well as in deformity-correction procedures on tubular bones. The interlocking nail has increased the potential for employing the intramedullary nail in the treatment of fractures in metaphysial regions. Recent developments are biased towards the use of small-diameter unreamed nails, preferably made of titanium. Callus distraction, the controlled continuous shifting of corticotomized bone, leads to new bone formation and has been known since the beginning of this century. This method, however, gained wide acceptance and popularity through the work of Ilizarov. This paper describes a fusion of the two methods into a very promising management concept for substantial bone defects resulting from trauma or resection of bone tumors, as well as for the correction of congenital or acquired uni- or bilateral differences in length of the extremities. Various systems such as the combination of callus distraction by external fixation over an intramedullary nail and a fully implantable system are presented.