Icariin, a plant-derived flavonol glycoside, has been proved as an osteoinductive agent for bone tissue engineering. A new bone repair scaffold was generated by thorough mixing of icariin and chitosan/ hydroxyapatite (icariin-CS/HA) using freeze-drying technigue. Characteristics of morphology, mechanical properties, biocompatibility, drug release behavior and bone repair abilities in vivo were evaluated. The results show that drug loading process of icariin did not affect physical structure of CS/HA composite significantly but decreased mechanical properies of CS/HA composite, which happened with a high dosage; icariin-CS/HA had favorable cell compatibility and promoted osteogenic differentiation of hBMSCs; the controlled release of icariin was satisfactory and the release retained after 90 d in vitro. In addition, icariin-CS/HA scaffolds had favorable osteoconduction and osteoinduction in vivo, and could fill bone defect sites and stimulate newborn bone tissues formation at early stage. On the basis of these data, icariin-CS/HA is believed to be an optical bone repair scaffold for tissue engineering.