Bone tissue engineering (BTE) is an evolving domain and provides encouraging solution to address the current demands in the orthopaedic healthcare system. However, even a well-exploited biomaterial such as synthetic hydroxyapatite (nHAp) fails to induce ideal bone regeneration in the complex in vivo conditions owing to its poor angiogenic potential. Hence, in addition to the osteogenic property, designing smart biomaterials with intrinsic angiogenic property is key for the success of bone tissue engineering implants. Recently, gum tragacanth (TG) has been testified to imbibe both angiogenic and osteogenic characteristics. In this context, TG functionalized nano-hydroxyapatite (TG-HAp) would be an ideal angiogenic-osteogenic material for BTE application. Here, we have reported the biofunctionalization of nHAp with TG through a silanized nHAp intermediate, and its osteogenic and angiogenic properties. X-ray diffraction (XRD) revealed the crystalline apatite phase of HAp. Biofunctionalization of nHAP with TG was confirmed both qualitatively and quantitatively by FTIR and TGA analysis respectively. TEM analysis confirmed the formation of needle shaped nanoparticles having size range (100–300 nm). Biofunctionalization lead to a change in zetapotential of nHAp from – 8.1 mV to 0.1 mV. The existence of multi-layered gum tragacanth on nHAp was confirmed by BET analysis. TG-HAp was found osteogenic when tested invitro using MG-63, (human osteoblast cells) and hMSCs, (human mesenchymal stem cells). Further, TG-HAp was found to increase the cellular VEGF expression in MG-63. Angiogenic property of TG-HAp was confirmed by in vitro tube formation of human umbilical vein endothelial cells (HUVECs). The study altogether indicates about the angiogenic and osteogenic potential of synthesized TG-HAp, which may be used as a new biomaterial in bone tissue engineering.