When producing implant materials, achievement of optimal bioactivity and biocompatibility are essential. Nanocoatings can provide an efficient cost effective way to alter the interactions of the implant material with its destined “host” environment. Nanocoatings of sol-gel derived carbonated hydroxyapatite (HAp) and zirconia were produced in this study. The surfaces were characterised by Fourier transform infrared spectroscopy (FTIR) and light microscopy. Cell adhesion, proliferation and viability, as well as expression of alkaline phosphatase (ALP is an indicator of bone formation) were assessed as indicators of biocompatibility. Our results have shown that sol-gel derived nano crystalline HAp acts as an ideal surface for implant coatings.