The mechanisms explaining the beneficial effects of glucocorticoid in ventilator-dependent preterm infants are not known. In the present randomized trial, we evaluated the hypothesis that dexamethasone (DEX) treatment of small, preterm infants at risk for chronic lung disease favorably affects the surfactant system. Twenty-three ventilatordependent infants, with a mean +. SD gestational age of 26 ? 2 wk and a mean birth weight of 836 4 173 g, received 1 wk of treatment with either DEX (dose 0.5 mg/kg/d) or placebo beginning at 2 wk of age. The airway specimens were analyzed for surfactant components, surface activity, surfactant inhibitors, and inflammatory mediators. The concentrations of these parameters in epithelial lining fluid were calculated using the urea method. DEX treatment decreased the concentration of nonsedimentable protein in epithelial lining fluid within 3 d (p < 0.05). The nonsedimentable fraction of airway specimens decreased the surface activity of surfactant as a function of protein concentration. At a constant protein concentration, the protein from placebo-treated infants inhibited the surface activity of human surfactant in vitro more than protein from DEXtreated infants ( p < 0.05). DEX transiently increased the concentration of surfactant protein-A in epithelial lining fluid but had no effect on surface activity of the sedimentable surfactant complex or on concentrations of phosphatidylcholine, IL-1P, lactoferrin, or myeloperoxidase. We conclude that the acute beneficial effect of DEX treatment in preterm ventilator-dependent infants may in part be mediated through a decrease in the concentration of nonsedimentable protein and a decrease in the capacity of this protein to inhibit surface activity. (Pediatr Res 36: 387-393, 1994) Abbreviations AS, airway specimen CLD, chronic lung disease DEX, dexamethasone ELF, epithelial lining fluid LF, lactoferrin MPO, myeloperoxidase PC, phosphatidylcholine PL, placebo SP-A, surfactant protein-A SPC, disaturated phosphatidylcholine Despite improved survival, many preterm infants fail to recover from the acute lung injury and develop CLD. In addition to immaturity, factors contributing to the development of CLD include barotrauma, oxygen toxicity, and inflammation (1, 2). The significance of the various suggested pathogenetic mechanisms is unclear.DEX therapy decreases the requirement of respiratory support and improves pulmonary mechanics in ventilator-dependent preterm infants (3-6). In several controlled trials on ventilator-dependent very-low-birth-weight infants, DEX therapy has improved the short-term pulmonary outcome, decreasing the duration of mechanical ventilation, but not the long-term outcome (7-11). Many potential mechanisms for the acute effect of DEX have been proposed. These include an increase in surfactant synthesis (12, 13) and in activity of antioxidant enzymes (14) shown after prenatal glucocorticoid therapy in fetal animals, and reduction of pulmonary edema, lung water, and alveolar epithelial permeability shown in preterm...