Our work depicts the development and characterization of Chitosan/Poly (caprolactone)/nano beta-Tricalcium phosphate (CS/PCL/β-TCP) porous composite scaffolds by freeze drying method. Addition of PCL to CS/β-TCP composite scaffolds had significantly increased the compressive strength besides decelerating the degradation rate. Human mesenchymal stem cells (hMSCs) were chosen to assess in-vitro biocompatibility of the prepared scaffolds in terms of cell viability, cell attachment and proliferation by MTT assay, SEM and DNA Quantification assays respectively. Further, increased osteogenic differentiation assay results (Alkaline Phosphatase assay and Total calcium content) revealed the role of β-TCP in composite scaffolds. Altogether, results suggest the potentiality of prepared porous freeze dried composite scaffolds in bone tissue engineering applications.