Repair and regeneration of bone defects with particular shape may be enhanced by in situ forming biomaterials which can be used in minimal invasive surgery. This study is aimed to prepare novel in situ forming biodegradable nanocomposites based on poly(3‐allyloxy‐1,2‐propylene) succinate (PSAGE) and nanosized hydroxyapatite (HA). These nanocomposite materials contain poly(ester‐anhydride) (PEA) microspheres embedded in a polyester matrix prepared by crosslinking PSAGE with oligo(1,2‐propylene maleate) and methacrylic monomers. Methyl methacrylate and one of hydrophilic oligo(ethylene glycol) methacrylates with different functionality and various length of oligooxyethylene chains were used as polymerizable diluents. Incorporation of microspheres which degrade faster than crosslinked polyester matrices enables formation of porous structure in situ. The obtained materials are liquid before curing and harden in several minutes with moderate exothermic effect. The effect of the composition of nanocomposite materials on selected properties, such as water sorption, mechanical strength, porosity and hydrolytic degradation process, was investigated. Rheological behavior and injectability of liquid formulations were studied. Analysis by energy dispersive spectroscopy confirmed the presence of characteristic features of HA in the nanocomposite materials. The morphology of the cured nanocomposites subjected to hydrolytic degradation was evaluated by scanning electron microscopy. The MTS cytotoxicity assay was carried out for extracts from crosslinked materials using hFOB1.19 cells. It was found that the extracts exhibit a dose‐dependent cytotoxic response. Copyright © 2014 John Wiley & Sons, Ltd.