Biocompatible, biodegradable films composed of a hybrid blend of chitosan and egg phosphatidylcholine (ePC) were characterized in terms of composition, morphology, and performance-related properties. The miscibility between chitosan and ePC for blends of 1 : 0.2 to 1 : 2.5 chitosan : ePC (wt/wt) was examined by differential scanning calorimetry and X-ray diffraction analysis. The partial miscibility exhibited between chitosan and ePC provided an understanding of the microdomain morphology that was visualized by laser scanning confocal fluorescence microscopy of the films. The stability of the films in physiologically relevant media was assessed by percent weight loss over time. The mechanical properties of the chitosan-ePC films were determined by dynamic mechanical analysis and tensile tests. Interestingly, the dry film composed of a high lipid formulation (1 : (wt/wt) chitosan: ePC) had the lowest tensile strength, contained lipid microdomains (10-30 mu m in size), and provided the highest degree of stability. Following immersion in phosphate buffer solution, the Young's modulus of the film was found to decrease by more than two orders of magnitude and could be further manipulated by decreasing the lipid content within the film. In this way, relationships between the composition and the physical as well as mechanical properties of the chitosan-ePC blends were established. Furthermore, this study demonstrates the potential usefulness of partially miscible chitosan-based blends for biomedical purposes. (c) 2006 Wiley Periodicals, Inc.