function between the circulation and the atmospheric environment. Lung diseases, including lung cancer, are among the leading causes of death in the modern society. Research on lung development, regeneration and cancer could provide significant insights for the development of therapeutic approaches on lung diseases. Hippo/YAP/TAZ signaling pathway regulates cell proliferation and differentiation, controls organ size, and plays an important role in response to mechanical forces. YAP/TAZ are expressed in many cell types and serve various regulatory functions in the embryonic and adult lungs. In this review, we mainly focus on the roles of Hippo/YAP/TAZ signaling pathway in embryonic lung development, regeneration and cancer. We postulate that Hippo/YAP/TAZ signaling may play potential roles in regulating the alveolar mechanics and immune responses in the lung.