Hydroxyapatite (HAp) and yttrium phosphate (YP) powders were synthesized through wet chemical route and calcination process. Calcined powders were used to prepare HAp-YP composites by solid mixing and sintering route, up to a YP content of 50 wt%. Sintered composites were characterized for phase analysis and densification study. The sintered composites were studied for machinability by drilling method using a conventional cemented carbide drill bit. Hydroxyapatite-yttrium phosphate composite pellets were studied for drilling by conventional drilling technique using carbide drill bits. In vitro cytotoxicity study of the sintered composites, using MTT assay by culturing in MG-63 cells, showed cell viability index >0.95.