AbstractIn this article, we report the development of a biodegradable monetite [dicalcium phosphate anhydrous (DCPA), CaHPO4]/phosphorylated chitosan (p‐chitosan) composite orthopedic cement. The cement pastes showed desirable handling properties, injectability, and washout resistance. The incorporation of p‐chitosan powders at 5 wt % shortened the setting time of DCPA and significantly improved the mechanical performance of DCPA cement, increasing the compressive strength almost twice from 11.09 ± 1.85 MPa at 0% chitosan to 23.43 ± 1.47 MPa at 5 wt % p‐chitosan. On the other hand, higher p‐chitosan content or untreated chitosan incorporation lowered the performance of DCPA cements. The cytocompatibility of the composite cement was investigated in vitro using the preosteoblast cell line MC3T3‐E1. An increase in cell proliferation was observed in both DCPA and DCPA–p‐chitosan. The results show that both the materials are as cytocompatible as hydroxyapatite. Based on these results, DCPA–p‐chitosan composite cement can be considered as potential bone repair material. © 2013 Wiley Periodicals, Inc. J Biomed Mater Res Part B: Appl Biomater, 102B: 260–266, 2014.