This review briefly summarizes our knowledge of the composition of pulmonary surfactant and the mechanisms involved in its biosynthesis. The currently available evidence suggests that dipalmitoylphosphatidylcholine, the major surface-active component of surfactant, can be synthesized in the alveolar type II pneumocyte via two pathways: (1) by direct synthesis de novo via the CPDcholine route, and (2) by remodelling of unsaturated phosphatidylcholines, most likely via a deacylation-reacylation mechanism. In addition, this paper focusses on recent findings concerning the biochemical characterization of lamellar bodies, the intracellular storage organelles of surfactant. Lamellar bodies from adult human lung contain a lamellar body-specific alpha-glucosidase--which should prove useful as a specific marker enzyme for this organelle.