Alveolar bone loss is associated with infections and its augmentation is a pre-requisite for the success of dental implants. In present study, we aim to develop and evaluate novel freeze dried doxycycline loaded chitosan (CS)/hydroxyapatite (HA) spongy scaffolds where hydroxypropylmethyl cellulose (HPMC) was added as a crosslinker. Scaffolds displayed compressive strength of 14MPa/cm3 and 0.34 as elastic response. The interconnected pore diameter was 41-273μm, favorably provided the template supporting cells and transport. An overall 10% degradation was seen after 14day's studies at pH 7.4 in PBS. Doxycycline hyclate, a frequently used drug to counter oral infections, demonstrated an initial burst release (6-8h), followed by a sustain release profile for the remaining 64h. CS/HA/HPMC scaffolds were nontoxic and promoted pre-osteoblast cell viability as seen with live/dead calcein staining after 24h where scaffolds with 10% and 25% HPMC by weight of scaffold had more viable cells. Scaffolds with 10%, 20% and 25% HPMC by weight of scaffold showed efficient cellular adhesion as seen in scanning electron microscopy images (day 8) indicating that pre-osteoblast cells were able to adhere well on the surface and into the porous structure via cytoplasmic extensions. Hoechst 33258 nuclear staining at day 2 and 8 indicated cell proliferation which was further supported byMTT assay at day 2, 4 and 8. Although all scaffolds supported pre-osteoblast cell viability, alkaline phosphatase (ALP) staining demonstrated that upon induction, differentiation was pronounced in case of scaffolds with 10% HMPC scaffolds. Conclusively, these materials having all the required mechanical and biological properties are potential candidates for alveolar bone regeneration.