Current scenarios in bone and tissue transplantation with controlled drug delivery is quite challenging since historic methods of bone grafting, including the allogenic and autogenous grafts pose the disadvantages of high infection risks and sometimes shortage of donors. Even, the synthetic bone grafting materials show the disadvantage of differing from natural bone either in structure or composition. Therefore, nanocomposites have been developed as promising bone grafts particularly hydroxyapatite/collagen system. The role of nanocomposites in drug delivery using injectable cell scaffolds has also been overviewed. Moreover, the use of silica-based bioactive ceramics for bone tissue has also been stated. And the development of tissue engineering for the production of nanocomposites is also highlighted. Tissue engineering can be viewed as a special case of drug delivery, the goal here being the accomplishment of controlled delivery of mammalian cells. This review is focused with a sight to provide information regarding potential of nanocomposites as a promising and invaluable tool in the future growth and development of bone grafting as well as drug delivery carrier.