Percutaneous needle biopsy is an accepted method of obtaining tissue for diagnosis of lung tumors. The depth of the lesion, size of the needle, operator experience, and the presence of emphysema have been identified as factors influencing the risk of postbiopsy pneumothorax, the most common complication. In this retrospective study of 308 patients, we enquired whether pulmonary function tests (available in 138 patients) and arterial PO2 (available in 103 patients) might predict the risk of pneumothorax following percutaneous needle biopsy. We found that as airway obstruction increases (FEV1.0/FVC less than 59% of predicted) or as arterial oxygenation decreases (PO2 less than 59 mm Hg), not only does the incidence of pneumothorax increase, but symptoms are more severe in that the number of pneumothoraces requiring chest tube drainage increases as well. We suggest that airway obstruction and arterial oxygenation are factors indicative of increased risk identifying patients who need close scrutiny after the procedure.