A bone substitute material was developed consisting of a chitosan oligosaccharide (COS) solution in a liquid phase and gelatin (GLT) containing calcium phosphate powder in a solid phase. The physicochemical and biocompatible properties of the hybrid cements were evaluated. The addition of COS to cement did not affect the setting time or diametral tensile strength of the hybrid cements, whereas GLT significantly prolonged the setting time and decreased the strength slightly. The setting reaction was inhibited by the addition of GLT to the initial mixture, but not by COS. However, the presence of GLT appreciably improved the anti-washout properties of the hybrid cement compared with COS. COS may promote the cement's biocompatibility as an approximate twofold increase in cell proliferation for 10% COS-containing cements was observed on day 3 as compared with the controls. The combination of GLT and COS was chosen due to the benefits achieved from several synergistic effects and for their clinical applications. Cement with 5% GLT and 10% COS may be a better choice among cements in terms of anti-washout properties and biological activity. Crown Copyright (c) 2009 Published by Elsevier B.V. All rights reserved.