Diffuse panbronchiolitis is a rare lung disease that mainly affects the Japanese. It is characterized by productive cough, dyspnea, and often a history of chronic sinusitis. If left untreated, it can lead to bronchiectasis and respiratory failure. Microscopically, there is a dense inflammatory infiltrate rich in macrophages around the small bronchioles and alveolar walls. Treatment with macrolide antibiotics is effective in slowing the disease course. The disease must be differentiated from other obstructive lung conditions such as chronic bronchitis, bronchiectasis, and asthma.