<p>The present work describes the facile fabrication of silver nanoparticles-coated xanthan gum/hydroxyapatite microspheres to explore their potential in bone tissue regeneration. The physical and biological characteristics of synthesised microspheres prepared using the water-in-oil emulsion (W/O) technique were characterised by using scanning electron microscopy (SEM), X-ray diffraction (XRD), in vitro cell and bacterial viability assay, osteogenic gene expression analysis were employed to characterise the microspheres. The XRD pattern depicted a crystalline structure of the composite. The surface morphology of the prepared microspheres showed porous structures, as confirmed by SEM. The silver nanoparticles-coated xanthan gum/hydroxyapatite microspheres unveiled a statistically higher cell viability compared to the xanthan gum-hydroxyapatite microspheres. The findings indicated an increased expression of osteogenic gene markers in the microspheres on 7 and 14 days of culture. Moreover, the synthesized microspheres exhibited remarkable antibacterial action against the <i>E. coli</i> bacterium due to the presence of silver nanoparticles. It was found from the results that the synthesized microspheres could be used as bone filler materials because of their improved cell viability, better antimicrobial efficacy, and higher alkaline phosphatase activity.</p> Graphical Abstract <p></p>