In utero diffusion MRI (dMRI) of the embryonic mouse brain is challenging due to maternal and fetal motions and limited resolution. We have previously developed a localized imaging technique and achieved fast dMRI of the live embryos. Here we explored the capacity of this technique to image embryonic mouse brains from mid-to-late gestation stages during development. Furthermore, we monitored the progression of embryonic brain injury in a mouse model of intrauterine inflammation. Our results suggested in utero dMRI is an indicator of fetal outcome after inflammatory injury, and the embryonic brain injury correlates with placental injury in this animal model.