The periosteum is a membrane that covers the outer surface of bones and plays an important role in bone growth and repair. It has two layers - an outer fibrous layer and inner cambium layer. The cambium layer contains stem cells that can differentiate into bone-forming cells and is responsible for bone growth. The periosteum gets thinner with age and has decreasing ability to form new bone. It receives blood supply from surrounding muscles and fascia. The periosteum is used in procedures like bone grafting and repairing cartilage defects due to its osteogenic and chondrogenic potential.