In this study, chitosan-gelatin-monetite (CGM)-based electrospun scaffolds have been developed that closely mimicked the microstructure and chemical composition of the extracellular matrix of natural bone. CGM-based nanofibrous composite scaffolds were prepared with the help of the electrospinning technique, post-cross-linked using EDC and NHS solution to improve their stability in an aqueous environment. The prepared CG scaffold showed an average fiber diameter of 284 ± 17 nm, whereas 5 and 7 wt% monetite containing CGM5 and CGM7 scaffolds, exhibited an average fiber diameter of 390 ± 11 and 435 ± 15 nm, respectively, revealing the fine distribution of monetite particles on the fibrous surface. The distribution of monetite nanoparticles onto the CG nanofibrous surface was confirmed using XRD, FTIR, and EDAX. Moreover, the addition of 7 wt% monetite into the CG electrospun matrix increased their ultimate tensile strength from 2.01 ± 0.05 MPa in the CG scaffold to 11.68 ± 0.09 MPa in the CGM7 scaffold. SBF study and staining with ARS confirmed the higher mineralization ability of monetite-containing scaffolds compared to that revealed by the CG scaffold. The monetite incorporation into the CG matrix improved its osteogenic properties, including pre-osteoblast MG-63 cell adhesion, proliferation, and differentiation, when seeded with the cells. A higher degree of cellular adhesion, spreading, and migration was observed on the monetite-incorporated CG scaffold than that on the CG scaffold. From MTT assay, ALP activity, ARS staining, and immunocytochemistry study, the cultured cells discovered a more conducive microenvironment to proliferate and subsequently differentiate into osteoblast lineage in contact with CGM7 nanofibers rather than that in CGM0 and CGM5. In-vitro results indicated that electrospun CGM-based composite scaffolds could be used as a potential candidate to repair and regenerate new bone tissues.