A novel composite material consisting of calcium-deficient hydroxyapatite (CdHAP) biomimetically deposited in a bacterial cellulose hydrogel was synthesized and characterized. Cellulose produced by Gluconacetobacter hansenii was purified and sequentially incubated in solutions of calcium chloride followed by sodium phosphate dibasic. A substantial amount of apatite (50–90% of total dry weight) was homogeneously incorporated throughout the hydrogel after this treatment. X-ray diffractometry (XRD) showed that CdHAP crystallites had formed in the cellulose. XRD further demonstrated that the CdHAP was comprised of 10–50nm anisotropic crystallites elongated in the c-axis, similar to natural bone apatite. Fourier transform infrared (FTIR) spectroscopy demonstrated that hydroxyl IR bands of the cellulose shifted to lower wave numbers indicating that a coordinate bond had possibly formed between the CdHAP and the cellulose hydroxyl groups. FTIR also suggested that the CdHAP had formed from an octacalcium phosphate precursor similar to physiological bone. Scanning electron microscopy (SEM) images confirmed that uniform ∼1μm spherical CdHAP particles comprised of nanosized crystallites with a lamellar morphology had formed in the cellulose. The synthesis of the composite mimics the natural biomineralization of bone indicating that bacterial cellulose can be used as a template for biomimetic apatite formation. This composite may have potential use as an orthopedic biomaterial.