A method of cellular therapy for a lung disease or condition in a subject is disclosed, wherein the method involves the administration of multipotent epithelial stem cells derived from amnion tissue (AECs). In a particular application, the method is used for the treatment of lung diseases and conditions such as chronic lung diseases including chronic obstructive pulmonary disease (COPD), acute lung conditions such as acute respiratory distress syndrome (ARDS), and ventilator associated lung injury (VALI).
