The effect of fatty acid desaturation on the surface properties of lung surfactant were studied on a Wilhelmy surface balance by using two preparations of lamellar body (LB) material with markedly different fatty acid profiles: (1) lamellar bodies from adult rabbit lung tissue, and (2) lamellar bodies from fetal rabbit lung tissue maintained in organ culture for 7 days. The fetal lung preparation contains an unusually high level of 16: 1 fatty acid (principally palmitoleic acid) at position sn-2 of phosphatidylcholine (Longmuir, K.J., Resele-Tiden, C. and Rossi M.E. (1988) J. Lipid Res. 29, 1065-1077). Surface pressure-surface area isotherms were obtained for both preparations and compared to isotherms of monolayers of dipalmitoylphosphatidylcholine. In addition, the elasticity of the lamellar body preparations were analyzed as a function of surface pressure, temperature, and rate of compression, both in the presence and absence of Ca2+ plus Mg2+. At slow rates of compression, we found that fetal LB films have lower elasticity and better respreading ability compared to the adult LB films, which can be explained by the high concentration of unsaturated palmitoleic acid in the fetal preparation. A dynamic component of elasticity was observed at high rates of compression only if Ca2+ and Mg2+ were present in the subphase. The analysis of the free energies, enthalpies and entropies of compression suggests that films with low concentrations of unsaturated fatty acids are are likely to undergo irreversible collapse, but films with excess unsaturated fatty acids accommodate the overcompression with a reversible loss of molecules from the surface.