Multiple cells contribute to the function of lungs. Pulmonary neuroendocrine cells (PNECs) are important for the regulation of breathing and carcinogenesis, although they represent only a small population of the airway lining. Achaete-Scute homologue-1 (Ascl1), a proneural basic helix-loop-helix transcription factor, is critical for the development of PNECs. We postulated that Ascl1-defined cells (ASDCs) may be progenitors, and traced their fate during development and injury repair. R26R-stop-lacZ (Rosa) reporter mice were crossed with Ascl1-Cre or Ascl1-CreERTM mice, in which the Ascl1 promoter drives the expression of Cre or inducible Cre recombinase, respectively. ASDCs and their descendants will be permanently labeled. The labeled cells were characterized by immunohistochemistry, using highly specific differentiation markers. Lineage studies revealed a population that proliferates before the pseudoglandular stage, and widely contributes to different compartments. When ASDCs were labeled on Embryonic Day 9.5, they gave rise to both airway and alveolar cells, but when labeled on Embryonic Day 11.5, they only gave rise to airway cells. In postnatal naphthalene injury, ASDCs contributed to regenerating Clara cells. In conclusion, Ascl1-defined cells in the lung represent a novel multipotent lineage, indicating a close relationship of neuroendocrine cells with other cell types.Keywords: Ascl1; lung; neuroendocrine; mouse; progenitor The murine respiratory system arises from the ventral foregut endoderm at around Embryonic Day (E) 9.5. The lung-bud epithelium invades the adjacent mesenchyme and starts branching to form a tree-like structure. The epithelium begins to differentiate during the pseudoglandular stage (E9.5-E16.5) (1). Multiple cell types contribute to both the structure and function of the lung. In the alveoli, Type II pneumocytes (AT2 cells) secrete surfactant, whereas Type I cells are responsible for gas exchange. In the airways, nonciliated secretory (Clara) cells have metabolic, anti-inflammatory, and anti-neoplastic properties, whereas ciliated cells eliminate excess mucus and harmful particles. In addition, the airway lining contains rare but important pulmonary neuroendocrine cells (PNECs) that may regulate breathing and contribute to carcinogenesis (2-4). PNECs occur as either solitary cells or clusters called neuroepithelial bodies (NEBs) (5). In developing lungs, PNECs begin to differentiate before other cells, but their histogenesis has remained elusive.Lung development is a complex process that requires mutual interactions between the mesoderm-derived mesenchyme and endoderm-derived epithelium. Both in vivo and in organ culture, a previous study demonstrated the early pseudoglandular stage of the lung as a dynamic structure, with smooth muscle and neural tissue in a prime position to influence growth and development (6). During embryonic lung development, intrinsic nerve ganglia function to innervate the airway smooth muscle (7). NEBs are extensively innervated, and may act as sensory airwa...