Nanotopographical features are found to have significant effects on bone behavior. In the present study, nanoporous aluminas with different pore sizes (20, 100 and 200 nm in diameter), were evaluated for their osteoinductive and drug eluting properties. W20-17 marrow stromal cells were seeded on nanoporous alumina with and without the addition of BMP-2. Although cell proliferation was not affected by pore size, osteogenic differentiation was 200 nm as compared to 20 and 100 nm pores induced higher alkaline phosphatase activity (ALP) and osteocalcin expression levels, thus indicating osteoblastic differentiation. Cell morphology revealed that cells cultured on 20 nm pores adopted a rounded shape, while larger pores (200 nm) elicited an elongated morphology. Furthermore, ALP expression levels were consistently higher on BMP-2 loaded nanoporous alumina surfaces compared to unloaded surfaces, indicating that not only is nanoporous alumina osteoinductive, but also has the potential to be used as a drug eluting bone-implant coating.