The trabecular bone fracture healing differs from diaphyseal fracture healing, in which trabecular bone heals based on intramembraneous ossification. The process includes a small callus formation, then woven bone forms, it follows by remodeling process to form regular trabecular bone. The objective of this study was to present an energy based model to simulate bone formation and remodeling during trabecular bone fracture healing. This modeling mainly focused on the mechanical factors. The model distinguishes three basic type of tissue: bone, cartilage and soft tissue. In order to determine tissue differentiation a fuzzy controller was proposed. An algorithm was developed to link the fuzzy logic controller to a finite element model (FEM) of trabecular bone. In general, finite element analysis provides input for fuzzy controller. Based on the input data, the fuzzy system selects the type of tissue to build. Strain energy density was used as the mechanical stimulus and a new parameter was incorporated in to the healing process as the remodeling index.