In the current study, we introduced a new water‐soluble polyphosphazene containing hydroxyl groups, poly(propyleneglycol)phosphazene (PPGP). The PPGP is converted to PPGP‐TiO2 cross‐linked polymer via hydrothermal reaction with Ti(OBu)4. The properties of the obtained polymers were assessed by 1H‐NMR, 31P‐NMR, Fourier transform infrared spectroscopy (FTIR) and X‐ray diffraction (XRD) spectroscopic methods, thermal techniques (DSC‐TGA), FESEM–EDX investigations, cyclic voltammetry (CV) and Zeta potential measurements. In order to predict PPGP‐TiO2 cross‐linked polymer structure and obtain HOMO–LUMO maps and COMSO sigma profile, quantum calculations were used by DMol3 module based on Dispersion‐corrected density functional theory (DFT‐D) in Materials Studio Software2017. As a common bone substitute material, hydroxyapatite (HAp) was prepared using a modified method and closely characterized by appropriate analysis. The PPGP cytotoxicity was examined using C2C12 and L929 cell lines and Escherichia coli. The C2C12 differentiation using PPGP (as media supplement) was quantified by alkaline phosphatase activity assay. The biocompatibility of PPGP‐TiO2 was compared with HAp using mentioned cell lines and acute inflammatory testing. The results demonstrated that cell proliferation and osteoblastic differentiation increased in presence of PPGP. Both in vitro and in vivo evidence indicated that the novel scaffold had significant viability, exhibiting notable adaptability with its surrounding living tissue.