Rationale: It remains unclear whether premature birth, in the absence of neonatal respiratory disease, results in abnormal growth and development of the lung. We previously reported that a group of healthy infants born at 32 -34 weeks gestation and without respiratory complications had decreased forced expiratory flows and normal forced vital capacities at two months of age. Objective: Our current study evaluated whether these healthy infants born prematurely exhibited improvement or "catch-up" in their lung function during the second year of life. Methods: Longitudinal measurements of forced expiratory flows by the raised volume rapid thoracic compression technique were obtained in the first and the second years of life for infants born prematurely at 32.7 (range 30 - 34) weeks gestation (N = 26) and infants born at full term (N = 24). Main Results: Healthy infants born prematurely demonstrate decreased forced expiratory flows and normal forced vital capacities in the first and second years of life. In addition, the increases in lung function with growth were similar to full term infants. Conclusions: Persistently reduced flows in the presence of normal forced vital capacity and the absence of catch-up growth in airway function suggest that premature birth is associated with altered lung development.