This study was performed to investigate about the osteo– conductive nature of PCL, HAP and CHT, when transplanted at the ectopic site in Wistar rats. Biocomposite materials were prepared and characterized as per our previously reported study.  Three study groups were planned: a) Scaffolds without hBMSC, (b) Scaffolds with undifferentiated hBMSC and (c) Scaffolds with hBMSC primed into bone forming cells (osteocytes). These scaffolds were implanted at ectopic site in Wistar rats and studied for osteogenesis at 2, 4 and 6 weeks of implantation by X–ray imaging and immunohistochemistry analysis. It was observed that maximum mineralization was there in implanted scaffolds with osteoinduced scaffolds, followed by those in first and second group. There was increase in bone spicules formation and decrease in inflammatory cells over a period of time. Implanted scaffolds have osteoinductive properties and may have scope in bone tissue engineering. For this, transplantation studies need to be performed in bone defect animal model.