The present invention relates to the biomimetic synthesis of nano-magnetichydroxyapatite with particle size ranging from 5-20 nm. The method involves using thesupramolecular matrix consisting of poly (vinyl) alcohol for the in situ synthesis ofmagnetic hydroxyapatite. The use of an organic matrix leads to the constrainedprecipitation of these magnetic hydroxyapatite at site-specific sites that exercise a highdegree of control over nucleation and growth of the prepared product and results in anoptimum degree of crystallinity required for orthopedic applications. The polymer matrixused plays a key role. in controlling the particle size, morphology and the precipitationprocess. These belong to a class of advanced functional materials which can befunctionalized further very easily and which will be instrumental in fabricating compositeswith multifunctional use for both biomedical and engineering applications. The material ofpresent invention has biocompatibility and bioactivity comparable to normalhydroxyapatlte.