Abstract: A system and method for collecting bone marrow exposed during a surgical procedure is disclosed. The system comprises a cannula; a collection element, such as a syringe; a storage element, such as a blood bag of blood tube; a valve assembly; and connecting tubing. The system is a closed system which significantly reduces the risk of microbial contamination during the collection and/or processing of the bone marrow. The method includes collecting bone marrow using the system during a surgical procedure, such as a hip or knee replacement surgery, and processing the collected bone marrow to obtain stem cells. Once obtained, the stem cells can be cryopreserved in a cell bank for later use.