The invention relates to a method for enhancing a surfactant, in particular a pulmonary surfactant, as well as a method for producing a surfactant enhancement agent, in particular a pulmonary surfactant enhancement agent. The invention also relates to a surfactant enhancement agent and a use of an enhancement agent for enhancing a surfactant, in particular, a pulmonary surfactant. Further, the invention relates to a method of mitigating oxidative damage to pulmonary surfactant by adding a cholesterol-sequestrating agent such as cyclodextrin. Finally, a method is provided for treating a patient having surfactant dysfunction due to oxidative damage to pulmonary surfactant by administering a surfactant-protective amount of a cholesterol-sequestrating agent to protect the surfactant from the negative effects of oxidative degradation. In the examples we show that MβCD, a cholesterol-sequestrating agent, can restore dysfunctional surfactant removed from the lungs of children with cystic fibrosis and non CF bronchiolitis to normal function.