Recent advances in medicine and other biological disciplines have considerably enhanced the life expectancy of human and consequently, resulting in age related health problems including skeletal complications. In addition, bone substitute to regenerate fractures resulting from trauma, congenital and degenerative diseases adds up to the total clinical need. During the last decade a number of bone tissue engineering strategies have been implemented to overcome the limitations of the current therapies. Cell-based bone tissue engineering using Mesenchymal Stem Cells (MSCs) isolated from the bone marrow seeded on to various osteo-inductive biomaterials with osteoinductive or–conductive growth factors offers a new promise. The success of bone tissue engineering rather depends on various factors such as scaffold materials, the quality of MSCs and their survival and differentiation in the implantation site.