To investigate the role of type II alveolar cells in surfactant uptake and reutilization while cells are in situ, the combination of isolated perfused rat lung and type II cell isolation has been used. After an equilibration period, isolated perfused rat lungs received an intratracheal injection of labeled rat surfactant or a labeled bovine-derived preparation, and the perfusion continued. At time intervals less than or equal to 3 h, lungs were lavaged and type II cells isolated. Freshly isolated cells from perfused lungs were highly viable as judged by trypan blue exclusion and by linear incorporation of labeled leucine into trichloroacetic acid precipitable protein during perfusion. After cell isolation, total phospholipid or phosphatidylcholine was extracted from cells. Incorporation of surfactant phosphatidylcholine label into cellular phosphatidylcholine was shown to be linear with time whether lungs received natural rat surfactant or bovine-derived surfactant preparation. Uptake of natural surfactant from alveoli into type II cells was approximately three times greater than uptake of bovine-derived material. Results of administration of 0.5 mumol surfactant phospholipid or 2.0 mumol were similar except that administration of 2.0 mumol of natural rat surfactant caused uptake to become saturated at 1 h of perfusion. An increase in cell-associated phosphatidylcholine occurred whether results were expressed on basis of cellular DNA or specific activity of cellular phosphatidylcholine. Majority of administered surfactant label remained lavage fluid associated at 3 h, whereas remainder was associated with isolated cells or debris from cell preparation. Little label was detected in perfusion medium.(ABSTRACT TRUNCATED AT 250 WORDS)