Fishbone comprising hydroxyapatite (bio-ceramic) is regularly viewed as a natural resource for biological and pharmaceutical applications. In this study, hydroxyapatite has been prepared from shbone waste using thermal calcination method. The composite hydroxyapatite-montmorillonite-sodium alginate was synthesized by co-precipitation method. Various functional groups of biocomposite were characterised using Fourier Transform infrared spectroscopy (FT-IR). Thermal gravimetric analysis (TGA) and X-ray diffraction studies were exhibited the thermal stability and crystallinity of biocomposite respectively. The morphological surface of composites was studied using scanning electron microscopy (SEM). The synthesized composite was designed to study the enhanced biological potential such as antibacterial, antioxidant, antidiabetic, drug loading and the drug releasing ability. Antioxidant and anti-diabetic analysis of composite were studied using Phosphomolybdenum and α-Amylase inhibitory method respectively. The drug releasing ability of compounds (Doxorubicin and Curcumin) were investigated by UV-spectrophotometry method at different pH medium (pH = 5.5, 6.8 and 7.4). Additionally, In-vitro kinetic studies were carried out on composite to determine the drug releasing ability of doxorubicin and curcumin.