Pulmonary function tests were performed in two groups of infants with bronchopulmonary dysplasia; a group less than 7 months of age with severe ventilator-dependent respiratory failure (Group A), and a group 7-22 months of age during resolution of their disease (Group B). Group A patients had significantly elevated minute volume, low specific compliance, elevated inspiratory and expiratory pulmonary resistance, and low functional residual capacity. Group B patients also demonstrated elevated minute volume, whereas specific compliance, inspiratory pulmonary resistance and functional residual capacity were within normal limits, and expiratory pulmonary resistance was only slightly above normal. With the exception of minute volume, the differences between the groups were significant (P less than 0.05). Sequential studies of resistance and compliance over 4-5 months in two patients in the younger group demonstrated values that approached or achieved normal range. It is concluded that pulmonary mechanics improve with age in the infant with severe bronchopulmonary dysplasia.