The process for extraction of lipoaspirate from adipose tissue using by cannula, lipoaspirate is used to isolate mesenchymal stem cells. Autologous mesenchymal stem cells isolated from extracted lipoaspirate are intraartcularly injected and used as regenerative medicine for treatment of ostheoarthritis. The process involves aspiration of 400-600cc from adipose tissue is by 4mm multi hole cannula. Lipoaspirated is treated with PBS (Phosphate-Buffered Saline) and optionally supplemented with antibiotics. Lipoaspirate is treated with Collagenase- I. Lipoaspirate is treated to isolate 100-800 million mesenchymal cells through multiple centrifugations. The isolated mesenchymal cells are administered intra-artcularly in proportion of 100-200mn cells/ Kg of body weight using Isolyte-M as carrier.