JAMES GROTBERG NORTHWESTERN CTS-9412523 ABSTRACT The work deals with two groups of projects involving interfacial fluid mechanics and which are related to the pulmonary system: (a) capillary-elastic instabilities which are fundamental to the stability of small airways as they close and re-open; and (b) soluto-capillary wave propagation of surfactant spreading and transport of dissolved drugs along the lining of the lung. The first part of the work addresses the fundamental nature of airway closure, how it is modified in diseases and how it may be prevented with various interventions. The second part of the research addresses the basic fluid mechanics and transport of surfactant (and drug) spreading under a variety of normal and pathological conditions with the aim of quantifying delivery rates. This will aid in the understanding of drug delivery in the treatment of various diseases, whereby surfactant is delivered externally, either directly through an endotracheal tube or through inhalation.