Nanomaterials with stem cells have evolved as a promising therapeutic strategy to regenerate various tissues. Tissue engineered grafts with bone marrow derived mesenchymal stem cells (BM-MSCs) can offer a cell-based therapeutic strategy for deep wounds like burns and traumatic ulcers. In this study, we have fabricated poly(3-hydroxybutyrate-co-3-hydroxyvalerate (PHBV) nanofibers through electrospinning. The adhesion, proliferation and epidermal differentiation of BM-MSCs on PHBV nanofibers were investigated. Epidermal differentiation media containing epidermal growth factor (EGF), insulin, 3,3',5-triiodo-l-thyronine (T3), Hydrocortisone and 1 alpha, 25-dihydroxyvitamin (D3) were used to trigger differentiation of BM-MSCs on PHBV. The proliferation of BM-MSCs on PHBV was significantly higher than the tissue culture polystyrene (TCPS) control (p < 0.05). Live/dead staining of BM-MSCs on PHBV nanofibers confirmed the change in morphology of BM-MSCs from spindle to polygonal shape indicating their differentiation into keratinocytes. The expression levels of the genes keratin (early), filaggrin (intermediate) and involucrin (late) that are involved in epidermal differentiation were upregulated in a stage-specific manner. Our results demonstrate the potential of PHBV nanofibers in promoting adhesion and differentiation of mesenchymal stem cells. This novel cellular nanofiber construct can be a better alternative to the existing therapies for skin tissue engineering. (1) PHBV nanofibrous scaffold promotes adhesion of bone marrow derived mesenchymal stem cells. (2) Nano geometry of the scaffold favors the epidermal differentiation of stem cells. (3) This novel scaffold-stem cells construct could be used as dermal substitute.