In the present study, the effects of a fibrous membrane between cement and bone in a femoral total hip replacement were investigated. The study involved the problem of modeling this fibrous membrane in finite-element analyses, and its global consequences for the load-transfer mechanism and its resulting stress patterns. A finite-element model was developed, suitable to describe nonlinear contact conditions in combination with nonlinear material properties of the fibrous membrane. The fibrous tissue layer was described as a highly compliant material with little resistance against tension and shear. The analysis showed that the load transfer mechanism from stem to bone changes drastically when such a membrane is present. These effects are predominantly caused by tensile loosening and slip at the interface, and are enhanced by the nonlinear membrane characteristics. Using parametric analysis is was shown that these effects on the load-transfer mechanism cannot be described satisfactorily with linear elastic models. Most importantly, the fibrous tissue interposition causes excessive stress concentrations in bone and cement, and relatively high relative displacements between these materials.