In this work we studied bone regeneration in vivo induced by a novel paramagnetic nanofibrous composite scaffold of γ-Fe2O3/nHAP/PDLLA through histological analysis. The microstructure of the scaffold was characterized by scanning electron microscopy. The scaffold was implanted in defects at the root segment of the lumbar transverse process on a rabbit model. Bone tissue samples were collected after 12 weeks of implant surgery. Bone formation in the defects was assessed using histological analysis. Deposition of type I collagen fibers were examined by Sirius red staining. Experimental results indicated that type I collagen was abundant deposited on the scaffold, and the bone regeneration was enhanced in comparison with that induced by the control scaffold of nHAP/PDLLA.