A new type of nanofibrous structure from chitosan bearing carboxymethyl-beta-cyclodextrin (CS-g-beta-CD) as a novel drug delivery system was synthesized by grafting carboxymethyl-beta-cyclodextrin (CM beta-CD) onto chitosan (CS) in the presence of water soluble 1-ethyl-3-(3-dimethylaminopropyl) carbodiimide (EDC) as the condensing agent and N-hydroxysuccinimide (NHS). Defect free mats containing CS-g-beta-CD have been fabricated using electrospinning of an aqueous solution of poly(vinyl alcohol) (PVA)/CS-g-beta-CD blends. The morphology and diameter of the electrospun nanofibers were examined by scanning electron microscopy (SEM). The average fiber diameter was in the range of 130-210 nm. SEM images showed that the morphology and diameter of the nanofibers were mainly affected by weight ratio of the blend at constant applied voltage. The results revealed that increasing CS-g-beta-CD content in the blends decreases the average fiber diameter. It was observed that the PVA/CS-g-beta-CD nanofibrous mat provided a slower release of the entrapped drug in compare to PVA/CS nanofibrous mat.