Abstract: A composite chitosan/nano-hydroxyapatite microsphere-based material used for bone-grafting and delivery of therapeutic agents. The composite material may be produced using co-precipitation methods. The composite material may be used to form scaffolds with significantly greater surface area and surface roughness than scaffolds composed of only chitosan. Composite scaffolds exhibit less swelling and greater toughness and flexibility than scaffolds fabricated by other techniques. Composite scaffolds also exhibit greater osteoblast proliferation. Composite scaffolds also may contain therapeutic agents or medicaments, and may be lyophilized.