This paper presents an underactuated artificial hand intended for functional replacement of the natural hand in upper limb amputees. The natural hand has three basic functionalities: grasping, manipulation and exploration. To accomplish the goal of restoring these capabilities by implanting an artificial hand, two fundamental steps are necessary: to develop an artificial hand equipped with artificial proprioceptive and exteroceptive sensors and to fabricate an appropriate interface able to exchange sensory-motor signals with the amputee's body and the central nervous system. In order to address these objectives, we have studied an underactuated hand according to a biomimetic approach, and we have exploited robotic and microengineering technologies to design and fabricate its building blocks. The architecture of the hand comprises the following modules: an actuator system embedded in the underactuated mechanical structure (artificial musculoskeletal system), a proprioceptive sensory system (position and force sensors), an exteroceptive sensory system (3D force sensors distributed on the cosmetic glove), an embedded control unit, and a human/machine interface. The first prototype of the artificial hand has been designed and fabricated. The hand is underactuated, and is equipped with opposable thumb and a proprioceptive sensory system. This paper presents the fabrication and experimental characterization of the hand, focusing on the mechanical structure, the actuator system and the proprioceptive sensory system.