Functional scaffolds fabricated from biopolymers are of great importance for tissue engineering. In this paper, by mimicking the combination of two major components in Extracellular Matrix – collagen and polysaccharide respectively, we fabricated gelatin and chitosan hybrid sponge for cartilage tissue engineering. Extending previous results of gelatin/chitosan film showed that all the hybrid coating film (chitosan: gelatin= 4:1; 1:1; 1:4) can support the adhesion of ATDC5 that comparable to Tissue Culture Dish (TCD). More importantly, stem cell line ATDC5 on coating dish of chitosan: gelatin=1:4 showed enhanced differentiation rate than that on other films and TCD. For three dimensional scaffolds, we fabricated hybrid sponge scaffold of chitosan: gelatin=4:1, 2:1, 1:1, 1:2, 1:4 respectively. Morphological characterizations of the sponges showed that this kind of gelatin/chitosan hybrid scaffold is promising for application in cartilage tissue engineering.