A novel “herbal scaffold” (Alg/O-CMC/CQ-E scaffold) was fabricated by incorporating medicinal plant Cissus quadrangularis (CQ) extract with natural biopolymers alginate (Alg) and O-carboxymethyl chitosan (O-CMC) by lyophilization technique The prepared composite scaffolds were characterized using scanning electron microscopy (SEM), Fourier transform infrared spectroscopy (FTIR) and X-ray diffraction analysis (XRD). Preliminary cytocompatibility studies with human mesenchymal stem cells (hMSCs) supports the biocompatible nature of the composite scaffolds. There was a significant difference in initial cell attachment and proliferation on the herbal scaffolds compared to scaffolds fabricated without extract. Moreover, the hybrid scaffold favoured a substantially enhanced differentiation of hMSCs to osteoblasts, even without osteogenic media supplements, followed by increased calcified mineral deposition within two weeks of incubation. Hence, our primary investigation of physico-chemical and biological properties of the herbal scaffolds suggests that this osteoinductive scaffold could serve as a potential candidate for bone tissue engineering therapeutics.