In this study, scaffold was fabricated from goat-lung of cadaver goat by decellularization method for its potential application in tissue engineering. The cellular components of goat-lung were removed by employing trypsin-SDS based method of decellularization. DNA quantification and DAPI staining verified the effective removal of native cells from the goat-lung. Verhoeff-Van Gieson (VVG) staining, H&E staining and Periodic-Acid Schiff (PAS) staining histologically assessed the composition of native and decellularized goat-lung matrix-demonstrating the presence of collagen, elastin and glycoproteins in the decellularized goat-lung matrix. Antibacterial activity of decellularized goat-lung matrix was evaluated against gram-negative (Escherichiacoli) and gram-positive (Staphylococcusaureus) bacteria, which shows the presence of naturally occurring bioactive peptides-exhibiting the antibacterial activity against E. coli for up to 9h and against S. aureus for up to 5h. The decellularized goat-lung matrix, as demonstrated by MTT assay, was found to be biocompatibile to L929 mouse fibroblasts, HepG2, human skin derived mesenchymal stem cells (hS-MSCs), osteoblasts and BMMSCs. All the above results confer the applicability of the decellularized goat-lung matrix as a potential scaffold for tissue engineering applications.