Bronchopulmonary dysplasia (BPD) is a chronic lung disease associated with premature birth and characterized by early lung injury. Over the past 4 decades, there have been significant changes in its definition, pathology and radiological findings as well as management of BPD. Management of the acute phase and later stages of this lung disease continue to evolve. Use of non-invasive ventilatory techniques, recombinant human SOD and CC10 and inhaled NO are some novel approaches that are being studied. Adequate nutrition is vital to optimize lung growth and repair. The widely accepted practice of prophylaxis against viral infections has markedly decreased the rates of rehospitalization. Infants with BPD, however, continue to have significant pulmonary and neurodevelopmental sequelae. Unraveling the genetic contribution to BPD will potentially pave the way to improved preventive and therapeutic approaches.