Excessive bone resorption, because of increased osteoclastic activity, is a key underlying cause of osteolytic disorders. Lipopolysaccharide (LPS) is a potent factor to stimulate osteoclastic activity by inducing inflammatory stress. An egg-derived tripeptide IRW (Ile-Arg-Trp) was previously shown to exert anti-inflammatory activity. The overall objective of this study was to investigate the effect of IRW on inhibiting LPS-induced osteoclastogenesis and inflammatory bone resorption in the mouse macrophage RAW 264.7 cells. IRW (25 and 50 μM) significantly inhibited the LPS-induced osteoclast formation and resorptive activity. Meanwhile, IRW significantly suppressed the LPS-induced expression of TNF-α, IL-6, iNOS, COXII, NO, and PGE2. Furthermore, IRW regulated a group of osteoclastogenesis-associated factors (TRAF6, c-Fos, NFATc1, and cathepsin K) because of the inhibition of LPS-activated NF-κB and MAPK pathways. In conclusion, our study suggested the ability of IRW to prevent LPS-induced inflammatory bone resorption activity via the inhibition of inflammatory responses and the activation of osteoclastogenesis-associated signaling pathways.