The influence of cortisol on the maturation of fetal lungs of rabbits has been studied. The normal developmental pattern of the various lobes is also documented and it is shown that there is a definite sequence of maturation among the five lobes of the lung. At a given gestational age, both upper lobes are consistently most mature. The right middle lobe is somewhat less mature while right and left lower lobes are least mature. The difference in the rate of maturation between the most advanced right apex and the least advanced base of lower lobes is as much as 1(1/2) days out of a total gestation of 30 days. Cortisol, injected into the fetuses 2 days prior to delivery, accelerated the overall maturation of the lung by about 1(1/2) days. The maturation of the type II epithelial cells also was accelerated and their inclusion bodies were more numerous than those of the controls. As reported elsewhere, prematurely delivered cortisol-injected rabbits of 26 to 28 days' gestation are more viable, breathe better and their lungs are better aerated when compared with control littermates. The surface activity of the alveolar lining of these animals is greater than that of the controls as indicated by higher ratios of bubble stability. These findings are apparently the results of accelerated maturation of the type II alveolar epithelial cells, which contain surfactant or its precursors as inclusions within the cytoplasm.