This study aims at exploring the use and peculiarities of stem cell therapy for pulmonary injury and degeneration. The success of stem cell therapy for clinical use needs the validation of several issues. Regenerative Therapy’s first and most critical requisite is the ex vivo synthesis of desirable cells to replenish those lost by the body in a degenerative disease. The etiology of degeneration differs from disease to disease, likewise, strategies to regenerate lost tissue in its heterogeneousness, should also cater to the regeneration process and to customize the same, the researcher ought to devise strategies to repair or replace or regenerate in the appropriate spatio-temporal format. For example, in the inflammation-degeneration-induced pathophysiological situations of the respiratory epithelium, human embryonic stem cells have been used in a tissue engineering format to induce differentiation and amplification into the desired type of cell, in this case, the non-ciliated squamous epithelial cells. To this end, we were given two human embryonic stem cell (hESC) lines and the main objective of our research work was to get BJNhem19 and BJNhem20 human embryonic stem cell (hESC) lines to differentiate into lung epithelial lineage–specific cells.