Abstract: The aims of the present study were to establish the optimal in vitro method for isolating, purifying and proliferating of Laoshan dairy goat fetal bone marrow-derived mesenchymal stem cells （BMSCs） and to assess their biological characteristic and induced neuronal differentiation potentiality. The femur samples were collected from a three-month-old fetus of a female Laoshan dairy goat. The BMSCs were harvested by centrifuging and were subsequently purified and proliferated. The population doubling time （PDT） of the BMSCs were determined. RT-PCR assay was used to assess the presence of oct4, Nanog and Sox2 genes. Passage 3 cultures of the BMSCs were used to conduct induced neuronal differentiation experiment, and the induced products were histologically and genetically identified. The results showed that the morphology of the isolated cells were uniform and was fibroblasts-liking spindle and the presence of oct4, Nanog and Sox2 genes were detected. After sub-cultured, the growth cells entered exponential growth phase on the 4th day and subsequently entered platform growth phase on the 8th day. The PDT of the first 10 passage cultures was 29.7 h. After induced neuronal differentiation, the purple-blue Nissl body was observed by toluidine blue staining method in passage 3 cultures. The specific expression of ENO2 and GFAP genes were positive in the induced cells. The results demonstrated that the BMSCs of Laoshan dairy goat is potential to be differentiated to neurons.