The present paper reveals the potential uses of novel hybrids of chitosan-g-lactic acid and sodium montmorillonite (MMT) in controlled drug delivery and tissue engineering applications. The drug-loaded novel nanohybrid films and porous scaffolds have been prepared by solvent casting and freeze-drying of the grafted polymer solution, respectively. Sodium Ibuprofen was loaded into nanohybrids of chitosan-g-lactic acid/sodium montmorillonite (CS-g-LA/MMT). Grafting of lactic acid and the drug loading were characterized by Fourier transform infrared spectroscopy. Formation of intercalated nanocomposites was confirmed by X-ray diffraction. Mechanical properties measurements have shown improvement in modulus and strength with expense of elongation by MMT reinforcement. The nanohybrids were found to be stable regardless of pH of the medium. The cell proliferation profile also shows that prepared nanohybrids are biocompatible. MMT reinforcement was found to control the drug (Ibuprofen) release rate in phosphate buffer saline solution (pH 7.4). MMT clay is therefore a viable additive for formulating sustained drug delivery systems based on lactic acid grafted chitosan. (C) 2008 Acta Materialia Inc. Published by Elsevier Ltd. All rights reserved.