Migration of coralline hydroxyapatite (CHA) particulate system beyond the implanted surface and its slow bioresorbtion are common clinical problems particularly, periodontal defects. In this study, an attempt was made to prepare alginate incorporated CHA composite-gel as a biodegradable bone composite to alleviate the above problems. The reaction conditions were optimized by changing the concentration of alginate to achieve an ideal composite-gel. The prepared materials were analyzed by various physico-chemical methods and the results suggest that the CHA is well intact with the macromolecules of polysaccharide. The FT-IR results clearly indicate the existence of hydroxyl and amide groups in addition to the characteristic peaks of CHA in the composite-gel. The particle size of the CHA increased because of the conjugation of alginate, which is highly beneficial to prevent the particle migration of CHA upon implantation. In-vitro physiological stability and solubility of the composite-gel was carried out in phosphate buffered saline (PBS) of pH 7.4 at 37°C. The results indicate that the dissolution rate of calcium ions is more in the composite-gel than CHA alone. The phase analysis was done by X-ray powder diffraction (XRD) method and the observations show no structural changes of the CHA due to the presence of alginate. These findings suggest that the CHA-alginate composite-gel would have tremendous potential as a biodegradable bone substitute while retaining the bioactivity of CHA and immobilization of particles after implantation.