Idiopathic pulmonary fibrosis is a disease characterized by progressive, unrelenting lung scarring, with death from respiratory failure within 2-4 years unless lung transplantation is performed. New effective therapies are clearly needed. Fibroblast activation protein (FAP) is a cell surface-associated serine protease up-regulated in the lungs of patients with idiopathic pulmonary fibrosis as well as in wound healing and cancer. We postulate that FAP is not only a marker of disease but influences the development of pulmonary fibrosis after lung injury. In two different models of pulmonary fibrosis, intratracheal bleomycin instillation and thoracic irradiation, we find increased mortality and increased lung fibrosis in FAP-deficient mice compared with wild-type mice. Lung extracellular matrix analysis reveals accumulation of intermediate-sized collagen fragments in FAPdeficient mouse lungs, consistent with in vitro studies showing that FAP mediates ordered proteolytic processing of matrix metalloproteinase (MMP)-derived collagen cleavage products. FAP-mediated collagen processing leads to increased collagen internalization without altering expression of the endocytic collagen receptor, Endo180. Pharmacologic FAP inhibition decreases collagen internalization as expected. Conversely, restoration of FAP expression in the lungs of FAP-deficient mice decreases lung hydroxyproline content after intratracheal bleomycin to levels comparable with that of wild-type controls. Our findings indicate that FAP participates directly, in concert with MMPs, in collagen catabolism and clearance and is an important factor in resolving scar after injury and restoring lung homeostasis. Our study identifies FAP as a novel endogenous regulator of fibrosis and is the first to show FAP's protective effects in the lung.Idiopathic pulmonary fibrosis, the most common of the idiopathic interstitial pneumonias, is characterized by inexorable progressive lung injury and scarring, with eventual death within 2-4 years from the time of diagnosis in the absence of lung transplantation (1). The etiology of the disease is poorly understood, and current Food and Drug Administration-approved treatments have only limited impact on the course of the disease (2-4).Fibroblast activation protein (FAP, 2 also known as seprase) is a 95-kDa cell surface, type II integral serine protease belonging to the post-proline dipeptidyl aminopeptidase (DPP) family (5) that is specifically induced on lung fibroblasts in patients with idiopathic pulmonary fibrosis, in particular at the leading edge of fibrosis (6). The DPP family of serine proteases cleaves amino-terminal dipeptides from polypeptides with L-proline or L-alanine at the penultimate position. FAP is unique in that it displays additional in vitro endopeptidase (7), gelatinase, and potentially collagenase activity (8,9). FAP expression is restricted, occurring at high levels on mesenchymal cells during embryogenesis (10) and then is repressed shortly after birth. In conditions associated with matrix remodeling...