Studies concerning the application of Porites asteroides coral for bone implant purposes have demonstrated the biological viability of its use. As a complement to previous research regarding the development of bone-powder based composite materials which are useful for such applications, this study was aimed at developing a coral powder-based composite material which would be able to satisfy the appropriate structural, mechanical and cytotoxic properties required for its use. A composite material made of coral powder, calcium sulphate powder and water was therefore developed, and its properties were tested in different compositions. The results showed how the resulting composite material had properties which were comparable to those of human cortical bone (from both a structural and mechanical point of view), as well as being non-toxic below a 0.35 mg/ml critical composite material concentration.