The morphology of spin-coated films and electrospun fibers of ethyl hydroxy ethyl cellulose (EHEC), hydrophobically modified ethyl hydroxy ethyl cellulose (HM-EHEC) and their blends with Poly(vinyl alcohol) (PVA) was examined by AFM, SEM and contact angle measurements. These polysaccharides upon blending with PVA exhibited smooth surface which was evidenced by Atomic Force Microscopy (AFM) observation. The electrospinnability of above polysaccharides with PVA was demonstrated for the first time. The oriented fibers could be obtained using a rotating disc collector. Contact angles of spin-coated films and electrospun fibers were discussed in terms of hydrophobicity and wetting characteristics. Further, The nanofibers of EHEC/PVA were in-situ crosslinked using citric acid and were used for controlled release of an antibacterial drug, Chlorhexidine Digluconate (ChD). In-vitro studies of cytotoxicity, cell growth and cell proliferation were performed using L929 mouse fibroblast cells. These nanofiber mats show potential in drug delivery and as scaffolds in tissue engineering applications.