To understand the characteristics of bone at the tissue level, the structure, organization and mechanical properties of the underlying levels down to the nanoscale as well as their mutual interactions need to be investigated. Such information would help understand changes in the bone properties including stiffness, strength and toughness and provide ways to assess the aged and diseased bones and the development of next generation of bio-inspired materials. X-ray diffraction techniques have gained increased interest in recent years as useful non-destructive tools for investigating the nanostructure of bone. This review provides an overview on the recent progress in this field and briefly introduces the related experimental approach. The application of x-ray diffraction to elucidating the structural and mechanical properties of mineral crystals in bone is reviewed in terms of characterization of in situ strain, residual stress-strain and crystal orientation.