This paper addresses the application of engineered nanocrystalline ultrahydrophilic titanium oxide films to artificial orthopaedic implants. Titanium (Ti) is the material of choice for orthopaedic applications and has been used for over fifty years because of its known biocompatibility. Recently it was shown that biocompatibility of Ti metal is due to the presence of a thin native sub-stoichiometric titanium oxide layer  which enhances the adsorption of mediating proteins on the surface thus enhancing cell adhesion and growth [2,3,4]. Improving the quality of surface oxide, i.e. fabricating stoichiometric oxides as well as nanoengineering the surface topology that matches the dimensions of adhesive proteins, is crucial for the increase of protein adsorption  and, as a result, the biocompatibility of Ti implant materials. We have fabricated ultrahydrophilic nano-crystalline transparent films of anatase phase of titania (TiO2) by ion beam assisted deposition (IBAD) processes in an ultrahigh vacuum system. Source material was 99.9% pure rutile TiO2. Various ion beam conditions were used to produce these coatings with different grain sizes (4 to 70 nm) that affect the wettability, roughness, and the mechanical and optical properties of the coating . Our biological experiments have shown that biocompatibility of these ultrahydrophilic nanoengineered TiO2 coatings are superior to commonly used orthopaedic titanium and even hydroxyapatite.