BACKGROUND: Although mesenchymal stem cells (MSCs) from different sources share many similar characteristics, they also exhibit individual properties. OBJECTIVE: To compare the biological characteristics of MSCs derived from umbilical cord and decidua parietalis. METHODS: Growth curve, cell doubling time, clone formation rate, immune phenotype, differentiation capacity and secreted cytokine levels were analyzed in MSCs derived from umbilical cord and decidua parietalis. RESULTS AND CONCLUSION: MSCs from umbilical cord and the decidua basalis exhibited similar morphology, spiral growth, S-shaped growth curve, immunophenotype, and differentiation potentials to osteogenesis and adipogenesis. For two kinds of MSCs, the positive rates of CD73, CD90 and CD105 were over 95% and the positive rates of CD34 and CD45 were below 1%. The growth rate, cell doubling time and clone formation rate of umbilical cord derived MSCs at passages 2 and 5 were significantly higher than those of decidua parietalis derived MSCs at passages 2 and 5 (P < 0.05). The level of epidermal growth factor secreted from umbilical cord MSCs was significantly higher that that from decidua basalis derived MSCs, while the levels of vascular endothelial growth factor and stem cell growth factor from umbilical cord derived MSCs was significantly lower those from decidua basalis derived MSCs (P < 0.05). These findings indicate that MSCs from both sources have similar biological properties, but umbilical cord derived MSCs are deemed to have better application prospects.