In this thesis, poly (caprolactone) (PCL)/poly (ethylene glycol) (PEG) polymer blend nanofibrous web containing Bioactive Glass nanoparticle (BG) and Simvastatin drug has been produced to make a drug release device. PCL/PEG nanofiber was successfully fabricated by electrospinning technique from polymer blend solution containing different amounts of BG (0-20%) and different ratios of PEG in the mixture of chloroform/methanol 75/25 (v/v) as solvent. Different percentage of Simvastatin was added just before the electrospinning (0.6, 6 and 12). Morphological and mechanical characteristics of nanofibrous web were evaluated. Result showed that viscosity of polymer solution increased by increasing the amount of BG, which led to an increase in the average fiber diameter observed by SEM, moreover viscosity was decreased with an increase in the ratio of PEG and consequency nanofibers with smaller and less uniform diameter were produced. Result showed that the amount of drug has no significant effect on nanofiber diameter. Tensile stress was dependent on the amount of BG. By increasing the percentage of BG from 0 to 15%, tensile stress was significantly increased; however there is a decrease in the tensile stress by increasing the amount of BG up to 20% which is probably due to agglomeration of BG in polymeric nanofibers. DSC analysis was utilized to investigate the effect of BG on the crystallinity and structural properties of nanofiber and also the probable chemical interaction of polymer and drug. DSC result showed that by increasing the amount of BG, crystallinity of polymeric nanofiber was increased, these result also showed that the melting peak of the drug disappeared in the nanofiber containing drug that showed drug molecules are in the amorphous form in the nanofiber. Result of degradation tests indicated that the presence of BG and the addition of PEG increased the degradation rate of nanofibrous web that was due to an increase in its hydrophilicity. Drug release rate was studied in the phosphate buffer medium with pH 7.4; the amount of drug dissolved in this medium was determined by using the UV spectrophotometery. Results showed that the drug release rate was affected by the amount of the BG also the ratio of PEG. By increasing the amount of BG, initial release rate was decreased but the amount of drug that was released in prolonged time was increased, also by increasing the PEG ratio; the release rate was increased that is because of increase in nanofiber biodegradability. SEM images and XRD analysis showed hydroxyapatite layer formation on the surface of nanofibrous web after soaking in simulated body fluid (SBF). Our study showed that this novel nanofibrous composite web can release Simvastatin in the controlled manner and has ability to form apatite layer in biological solution on the nanofiber surface so it has good potential in bone regeneration applications