Human bone is composed of organic and inorganic composite materials, contributing to its unique strength and flexibility. Hydroxyapatite (HAP) has been extensively studied for bone regeneration, due to its excellent bioactivity and osteoconductivity, which makes it a highly valuable biomaterial for tissue engineering applications. For better therapeutic effects, composite nanofibers containing polyvinyl alcohol (PVA) and polyvinyl Pyrrolidone (PVP) were developed using an electrospinning technique in this study. Herein, hydroxyapatite (a major inorganic constituent of native bone) concentrations varying from 5 to 25% were reinforced in the composite, which could alter the properties of nanofibers. The as-prepared composite nanofibers were characterized by SEM, TEM, XRD, and FT-IR spectroscopy, and a bioactivity assessment was performed in simulated body fluid (SBF). The ICP-OES analysis was used to determine the concentration of Ca2+ and PO42- ions before and after SBF immersion. To optimize the material selection, the nanofibrous scaffolds were subjected to cell proliferation and differentiation in MG-63 osteoblast cell lines, but no significant toxicity was observed. In conclusion, HAP-PVA-PVP scaffolds exhibit unique physical and chemical properties and ideal biocompatibility, with great promise to serve as effective candidates for bone tissue applications.