Novel three-dimensional hybrid polymer-hydroxyapatite nanocomposites have been developed as load-bearing synthetic bone graft through in situ mineralization process, using natural polymers carboxymethyl cellulose (CMC) and gelatin (Gel) as matrix. This process is simple and does not involve any chemical cross-linker. Detailed structural and physicochemical characterization of the samples disclosed that incorporation of gelatin with CMC assists the formation of CMC-Gel polymeric network of new conformational structure through non-covalent interactions (H-bond). The formation of hydroxyapatite (HA) in this polymeric network was occurred in such a fashion that the HA serves as bridging molecule which strengthen the polymeric network more and formed a mechanically strong three-dimensional CMC-Gel-HA nanocomposite. The synthesized CMC-Gel-HA nanocomposites have compressive strength and modulus in the range of 40-86 MPa and 0.4-1.2 GPa, respectively, analogous to human cancellous as well as cortical bone. In vitro cell interaction of the synthesized nanocomposites with osteoblast-like MG-63 cells has been evaluated. Results showed that synthesized CMC-Gel-HA nanocomposite promote cells for high alkaline phosphatase activity and extracellular mineralization. Extracellular mineralization ability of nanocomposite was investigated by alizarin red staining and von Kossa staining. Biodegradable nature and bone apatite formation ability of CMC-Gel-HA nanocomposite under simulated physiological environment were investigated by different characterization processes. Results indicated that the synthesized CMC-Gel-HA nanocomposite has great potential to be used as regenerative bone graft in major load-bearing region.