The use of local agents to achieve hemostasis of bone that does not interfere with repair and recovery is a complex and emergency subject in surgery. In this study, the dual functional biodegradable self-assembling nanopeptide (SAP) RADA16-I was synthesized by solid phase synthesis and was shown to exhibit immediate hemostasis and accelerative osteosis. The RADA16-I showed good performance as a hemostatic agent, which was investigated by comparison with the effects of bone wax in the ilium bone defect model of New Zealand rabbits. The RADA16-I exhibited efficient function of bone regeneration in both radiographic analysis and histological examination, while the bone wax inhibited osteogenesis. Moreover, in in vivo experiment, the RADA16-I was shown to exhibit excellent biocompatibility, while the group with bone wax showed a severe inflammatory response at the interface with bone. Thus, the RADA16-I is proven to be an excellent biocompatible material with effective dual function of hemostasis and osteosis.