Pulmonary CT images can provide detailed information about the regional structure and function of the respiratory system. Prior to any of these analyses, however, the lungs must be identified in the CT data sets. A popular animal model for understanding lung physiology and pathophysiology is the sheep. In this paper we describe a lung segmentation algorithm for CT images of sheep. The algorithm has two main steps. The first step is lung extraction, which identifies the lung region using a technique based on optimal thresholding and connected components analysis. The second step is lung separation, which separates the left lung from the right lung by identifying the central fissure using an anatomy-based method incorporating dynamic programming and a line filter algorithm. The lung segmentation algorithm has been validated by comparing our automatic method to manual analysis for five pulmonary CT datasets. The RMS error between the computer-defined and manually-traced boundary is 0.96 mm. The segmentation requires approximately 10 minutes for a 512x512x400 dataset on a PC workstation (2.40 GHZ CPU, 2.0 GB RAM), while it takes human observer approximately two hours to accomplish the same task.