Purpose The purpose of this study was to assess the effect of polyethylene terephthalate (PET) on proliferation, differentiation, and attachment of ovine meniscocytes seeded in a hyaluronic acid/polycaprolactone biomaterial (BF-1) Methods BF-1 (30 % hyaluronic acid and 70 % polycaprolactone) cylinders with PET (CO-PET) or without PET, were seeded with 2x10 6 ovine meniscus cells. The specimens were harvested in triplets at 12 hours, seven, 14, 21 and 28 days. DNA content was measured to test proliferation, histological analysis for cell morphology, and biochemical assessment of glycosaminoglycan content and RT-PCR for type I and II collagen were used to assess differentiation, with immunohistochemistry as post-translational control. Attachment was evaluated by electronic microscopy at 28 days. Results DNA content was consistent and equal across groups, suggesting no effect of PET on cell proliferation. However, the BF-1 CO-PET showed a higher percentage of cells with spherical morphology which is typical for a chondrocytic phenotype. This biomaterial with PET also showed a higher type II collagen mRNA expression and an eightfold higher GAG-content than the material without PET. Small amounts of type I collagen mRNA expression were present on both materials at all time points. PCR results were confirmed by immunohistochemistry. Conclusion Addition of PET to a hyaluronic acid/polycaprolactone biomaterial enhances a cartilaginous phenotype, increased type II collagen mRNA expression and a higher GAG production in ovine mensicocytes.