Research and development in the design, synthesis, modification, evaluation, and characterization of polysaccharide-based bioactive polymeric materials for guiding and promoting new tissue in-growth is reviewed. Emphasis is given in this interdisciplinary field of tissue engineering (TE) with particular reference to bone, cartilage, and skin TE. Current strategies in scaffold-guided TE approaches using polymers of natural origin and their composites are elaborated. Innovative modification techniques in creating functional materials for advanced TE applications are presented. Challenges and possible solutions in the technological innovation in factor molecules incorporation and surface functionalization for improving the fabrication of biomaterials scaffolds for cost-effective TE are also presented.