A braided multiscale fibrous scaffold consisting of aligned PCL micro/collagen-bFGFnano fibers was fabricated (mPCL-nCol-bFGF) to mimic native tendon tissue architecture which was further coated with alginate to aid in prevention of peritendinous adhesion. The bFGF release kinetics showed a sustained release of growth factors for a period of 20 days. Further, in vitro cell viability, attachment, and proliferation were performed using rabbit tenocytes under static and dynamic conditions. mPCL-nCol-bFGF showed a higher cell proliferation and enhanced expression of tenogenic markers compared to mPCL-nCol (braided scaffold without bFGF). When subjected to dynamic stimulation in a bioreactor, mPCL-nCol-bFGF-DS (braided scaffold with bFGF after dynamic stimulation) showed enhanced cellular proliferation and tenogenic marker expression, compared to mPCL-nCol-bFGF. The in vivo studies of the cell seeded scaffold after dynamic stimulation in Achilles tendon defect model showed tendon tissue regeneration with aligned collagen morphology within 12 weeks of implantation.