Bone-burring is a common procedure in orthopedic, dental, and otologic surgeries. Virtual reality (VR)-based surgical simulations with both visual and haptic feedbacks provide novice surgeons with a feasible and safe way to practice their burring skill. However, creating realistic haptic interactions between a high-speed rotary burr and stiff bone is a challenging task. In this paper, we propose a novel interactive haptic bone-burring model based on impulse-based dynamics to simulate the contact forces, including resistant and frictional forces. In order to mimic the lateral and axial burring vibration forces, a 3D vibration model has been developed. A prototype haptic simulation system for the bone-burring procedure has been implemented to evaluate the proposed haptic rendering methods. Several experiments of force evaluations and task-oriented tests were conducted on the prototype system. The results demonstrate the validity and feasibility of the proposed methods.