Fracture rates are higher in institutionalised elderly people than in any other community group. Fracture risk is increased by inadequate calcium intake, a common risk factor in this group. However, calcium supplementation is purportedly associated with adverse cardiac outcomes and higher risk of hip fractures, while nutritional sources, which in part contain calcium, are not. We aimed to determine if increasing dairy intake (~4 serves daily) improved bone metabolic markers in 215 aged-care residents (mean age 86 ± 8 years, 65% females) with low calcium intakes from 56 aged-care facilities randomised to a high-dairy menu (n=26: 2.9±1.1serves/d; calcium 116±383mg/d) or usual menu (control group, n=30: 1.3±0.7dairy serves/d; calcium 661±238mg/d). Food consumption was measured using plate waste analysis, and fasting morning bloods were analysed for CTX, P1NP, PTH, IGF-1 at baseline and 3 months. Group differences were determined using ANOVA. At baseline no group differences in baseline CTX, P1NP, IGF-1 and PTH were observed and mean calcium (687±261mg/d) and protein (54±17g/d, 0.8±0.3g/kgBW) intakes were below recommended levels. Dairy supplementation augmented intakes of dairy (1.7±1.1serve/d, p<0.001), calcium (470±339mg/d, p<0.001) and protein 11±20g/d (p<0.001).  CTX declined (414±250 vs 375±266ng/L, p=0.034) in the high-dairy group but remained unchanged (423±230 vs 424±259ng/l, p=0.981) in controls. P1NP remained unchanged with intervention (54±38 vs 50±38mcg/L, p=0.116) but declined in controls (54±34 vs 46±26mcg/L, p=0.006). The observed trend of an increase in IGF-1 with supplementation (15.1±5.9 vs 15.8±6.3nmol/L, p=0.053) and a decline in controls (16.7±6.4 vs 16.0±6.7nmol/L, p=0.054) resulted in a difference in changes between groups (p=0.011). No changes were observed for PTH. Improving calcium intake using dairy foods reduced markers of resorption and improved IGF-1, and may reduce fracture risk in aged-care residents.