A biomimetic process has been developed to fabricate hydroxyapatite-gelatin (HAP-GEL) nanocomposites for bone regeneration (Chang and Ko et al. 2003). We hypothesize that this newly developed HAP-GEL is osteoconductive and is suitable for tissue engineered scaffolds. This preliminary study is aimed to characterize cell affinity and osseous regeneration of the HAP-GEL. The HAP-GEL was synthesized according to the procedures described in the previous publication. The attachment and proliferation of human fetal osteoblasts on HAP-GEL discs were evaluated using three different gelatin contents (2g, 3g, and 4g). The cells were seeded onto each disc and incubated at 34 degrees Celsius in 5% CO2 air atmosphere. At different time points of cultivation, cells were stained with fluorescein diacetate (FDA) and ethidium bromide (EB) to determine their viability and morphology. To assess the cell proliferation, cells were detached at Days 1, 4, and 7 by trypsinzation and counted. For in vivo tests, HAP-GEL rods were implanted into the proximal femur of Sprague-Dawley rats. One month after the implantation, the femurs were harvested and the undecalcified HAP-GEL-bone sections were stained for histopathology. Four hours after attachment, most cells appeared round in all discs; cell spreading was observed after 24 hours. The highest gelatin content supported a significantly higher cell growth than the others at 7 days. Thus all compositions support satisfactory attachment, spreading and growth. In vivo results showed excellent interfacial bone regeneration. No necrotic tissues were found. In conclusion, the HAP-GEL not only mimics the biochemistry and nanostructures of bone but also supports the attachment, proliferation and differentiation (bone formation) of osteoblasts. The HAP-GEL we developed provides a suitable surface for regeneration.