In view of previous studies suggesting that steroids may be of benefit in reducing the severity of bronchopulmonary dysplasia (BPD), we administered a brief, rapidly tapered course of dexamethasone (.5 mg/kg/day for 3 days followed by .25 mg/kg for 2 days, and then a single dose of .25 mg/kg 48 hr later) to 8 neonates (Birth Weight 580 - 1490 gm, Gest 26 - 29 wk) with evidence of early BPD beginning at 17 - 24 days of age; 4 infants received 2 separate courses. All infants were intubated requiring IMV or required an FIO2 >.4 having been previously ventilated. There was a significant improvement in alveolar-arterial oxygen gradient (A-a)DO2 seen over the 7 day period beginning within 6 hours of starting therapy (F4-55 = 2.84, p <.05).