Despite several recent advances, poor vascularization in implanted scaffolds impedes complete regeneration for clinical success of bone tissue engineering. The present study aims to develop a multi-biofunctional nanocomposite for bone tissue regeneration using copper nanoparticle decorated reduced graphene oxide (RGO_Cu) hybrid particles in polycaprolactone (PCL) matrix (PCL/RGO_Cu). X-ray photoelectron spectroscopy and X-ray diffraction confirmed the presence of copper oxides (CuO and Cu2O) on RGO. Thermogravimetric analysis showed that 11.8% of copper was decorated on RGO. PCL/RGO_Cu exhibited steady release of copper ions in contrast to burst release from the composite containing copper alone (PCL/Cu). PCL/RGO_Cu exhibited highest modulus due to enhanced filler exfoliation. Endothelial cells rapidly proliferated on PCL/RGO_Cu confirming cytocompatibility. The sustained release of ions from PCL/RGO_Cu composites augmented tube formation by endothelial cells evidenced enhanced angiogenic activity. Gene expression of angiogenic markers VEGF and ANG-2 was higher on PCL/RGO_Cu compared to PCL. The osteogenic activity of PCL/RGO_Cu was confirmed by the 87% increase in mineral deposition by pre-osteoblasts compared to PCL. The bactericidal activity of PCL/RGO_Cu showed 78% reduction in viability of Escherichia coli. Thus, the multi-biofunctional PCL/RGO_Cu composite exhibits angiogenic, osteogenic and bactericidal properties, a step towards addressing some of the critical challenges in bone tissue engineering.