The present invention provides a collagen hydrolysate sponge scaffold and a process for the preparation thereof. The composite collagen hydrolysate scaffold comprises of collagen hydrolysate, chitosan and silica. The prepared composite scaffold is useful in tissue repair and regeneration applications. The prepared scaffold exhibits porous morphology, good stability against collagenase degradation, better water uptake capacity and antimicrobial property. The composite scaffold could be a very effective material for the treatment of topical wounds and as implant for various tissue engineering applications.