Novel biomaterials are of prime importance in tissue engineering. Here, we developed novel nanostructured Al2TiO5-Al2O3-TiO2 composite as a biomaterial for bone repair. Initially, nanocrystalline Al2O3-TiO2 composite powder was synthesized by a sol-gel process. The powder was cold compacted and sintered at 1300-1500 degrees C to develop nanostructured Al2TiO5-Al2O3-TiO2 composite. Nano features were retained in the sintered structures while the grains showed irregular morphology. The grain-growth and microcracking were prominent at higher sintering temperatures. X-ray diffraction peak intensity of beta-Al2TiO5 increased with increasing temperature. beta-Al2TiO5 content increased from 91.67% at 1300 degrees C to 98.83% at 1500 degrees C, according to Rietveld refinement. The density of beta-Al2TiO5 sintered at 1300 degrees C, 1400 degrees C and 1500 degrees C were computed to be 3.668 g cm(-3), 3.685 g cm(-3) and 3.664 g cm(-3), respectively. Nanocrystalline grains enhanced the flexural strength. The highest flexural strength of 43.2 MPa was achieved. Bioactivity and biomechanical properties were assessed in simulated body fluid. Electron microscopy confirmed the formation of apatite crystals on the surface of the nanocomposite. Spectroscopic analysis established the presence of Ca and P ions in the crystals. Results throw light on biocompatibility and bioactivity of beta-Al2TiO5 phase, which has not been reported previously. (C) 2010 Elsevier Ltd. All rights reserved.