This paper reports the effect of the various ceramic coatings viz., hydroxyapatite (HA) and partially stabilized zirconia (PSZ) on the bond strength between the bone and implant, and cell compatibility of screw-shaped Ti-6Al-7Nb dental implants. Electrophoretic deposition technique (EPD) was used to obtain a uniform coating of one of the three types of ceramic layers (HA, PSZ and 50%HA + 50%PSZ) on the screws. Structural investigations were carried out on the prepared HA powder and the modified surfaces of the Ti-6Al-7Nb alloy using different techniques, namely X-ray diffraction (XRD), and Fourier transform infrared spectroscopy (FTIR). The in vivo studies were performed by the implantation of screw-shaped uncoated and coated implants in the tibia of white New Zealand rabbits. To understand the bone-implant interface, biomechanical test was carried out after 2, 6 and 18 weeks healing periods. There was increased mechanical strength (torque value) of bone-implant interface with time, and the highest increment in the bond strength was recorded for implants coated with a 50% HA and 50% PSZ. Histological results show that the coated Ti-6Al-7Nb screws after 18 weeks of the implantation seem to be well-tolerated by the bone since no adverse tissue reaction was evident. However, there was a faster reaction of bone towards the coated implants compared to the uncoated one. The histochemical stain studies shows higher cellular activity and mature bone formation on all the samples. © 2008 Springer Science+Business Media, LLC.