Diabetes type II were known to affect several organs in the body including bone, thus diabetes type II patients have higher risk of bone fracture. One of the important features in diabetes type II is low level of anti-inflammatory cytokine Interleukin-10 (IL-10) and gut leak condition. Both of these conditions have the role in diabetes induction, progression and exacerbation. Autogenous Mesenchymal stem cells (MSCs) have been widely utilized for enhancing bone healing treatment. Due to the diabetes condition affecting one of the most common and widely used MSCs source, the bone, this study was done to investigate the effect of IL-10 KO mice induced with gut leak as diabetes type II mouse model in term of its effect to bone loss, properties of mice bone marrow MSCs (mBM-MSCs), and osteogenic induction of mBM-MScs. Assessment of bone loss were done in mice tibia, and mBM-MSCs were isolated from the femur. Characterization of mBM-MSCs properties were done by comparing MSCs morphology, surface markers, stemness and proliferation gene expression, proliferation assay, and colony forming unit (CFU) of background control group, transgenic control group with the gut leak-induced diabetes type II mouse model. In vitro osteogenic differentiation properties were done by assessing expression of osteogenic gene, alkaline phosphatase activity, and mineralization staining. The outcome illustrated that despite of the bone loss condition, mBM-MSCs from gut leak-induced diabetes type II mouse model still expressing the stemness gene and show higher expression of stemness marker. However, it shows lower osteogenic differentiation properties. The obtained result can serve as baseline knowledge and suggestion for further exploration, utilization and application of BM-MSCs to and from diabetic individual