Nanofibres and nanocomposites are highly promising recent additions to materials in relation to tissue engineering. Mimicking the architecture of an extracellular matrix is one of the major challenges for tissue engineering. An operationally simple electrospinning technique was used to fabricate polycaprolactone/nanohydroxyapatite/collagen (PCL/nHA/Col) biocomposite nanofibrous scaffolds to provide mechanical support and to direct the growth of human fetal osteoblasts (hFOB) for tissue engineering of bone. Biocomposite nanofibres constructed with PCL, nHA and collagen type I combinations gave fibre diameters around 189 ± 0.026 to 579 ± 272 nm and pore sizes 2–35 µm. Resulting nanofibrous scaffolds were highly porous (>80%) structures and provided a sufficient open pore structure for cell occupancy whilst allowing free transport of nutrients and metabolic waste products; moreover, vascular in-growth was facilitated. The pore organization was determined by the deposition process, including interconnections of the fibre network. The mineralization was significantly increased (55%) in PCL/nHA/Col biocomposite nanofibrous scaffolds after 10 days of culture and appeared as minerals synthesized by osteoblast cells. The unique nanoscale biocomposite system had inherent surface functionalization for hFOB adhesion, migration, proliferation and mineralization to form a bone tissue for the regeneration of bone defects.