Amnion epithelial cells, dervied from the amnion fetal membranes, are pluripotnent and imunomodulatory. They ave been shown to both prevent and repair acute lung injury in a number of diverse experimental models. They are readily isolated from term placentae in sufficient numbers suitable for clinical application. They also have a number of features that make them particularly attractive as a future cell therapy including being immune-privileged and nontumorigenic. This chapter reviews the use of amnion epithelial cells as a cell therapy for lung injury, addressing likely mechanisms of action and future clinical trials.