Background Osteoarthritis (OA) in the horse is an economic and welfare issue and there are no current disease modifying drugs available. Stem cells have been suggested as potential therapeutics for OA, originally on the basis of their regenerative capacity. However, it is now hypothesised that MSCs exert their effects via paracrine factors including the production of extracellular vesicles, that can themselves recapitulate the MSC effects in the joint. Results In this study we have, for the first time, isolated and characterised extracellular vesicles from equine bone marrow stem cells. We have shown these vesicles can be taken up by autologous chondrocytes and have anti-inflammatory effects on gene expression following chondrocyte exposure to tissue necrosis factor α and Interleukin 1β. No effects on chonodrocyte proliferation or migration was observed. Conclusion Extracellular vesicles can be isolated from equine bone marrow mesenchymal stem cells, they are taken up by chondrocytes and have an anti-inflammatory action.