Background: Human dental pulp stem cells (hDPSCs) considered as a promising source of mesenchymal stem cells for bone regeneration. It can be used to improve osseointegration of dental implant and improve its stability. Objectives: Assessment of bone healing and implant osseointegration by the use of human dental pulp stem cells with chitosan scaffold and compared the result with xenografts in a rabbit model. Materials &Methods: Eighteen adult white rabbits were used in this study. They were distributed equally into three groups, group I, human dental pulp stem cells and chitosan was used before implant insertion in the tibia. Group II, xenografts were used and group III was the control group. After 12 weeks the animals were sacrificed and assessment of bone formation was accomplished by the used of the histological section using H&E, Masson stain as well as scanning electron microscope (SEM). Results: The highest mean area percent was detected in the stem cell group, followed by the xenograft group, while the control group revealed the lowest mean area percent value. Analysis of variance test revealed a highly significant difference between the studied groups (P=0.00). Comparison between the gap distances (µm) in the three groups measured by electron microscope indicated that the lowest mean gap distance was presented in the stem cells group. Conclusion: human dental pulp stem cells coupled with chitosan is a promising method for bone formation and maturation around dental implant and help in osseointegration.