As an efficient uncertainty quantification (UQ) methodology for moment propagation and probability analysis of quantities of interest, polynomial chaos (PC) expansions have received broad and sustained attentions. However, the exponentially increasing cost of building PC representations with increasing dimension of uncertainty, i.e., the curse of dimensionality, seriously restricts the practical application of PC at the industrial level. Some efficient strategies applying adaptive basis selection algorithm for sparse optimization (or l1-minimization) of PC show great potential compared to the classical full PC. However, these strategies mainly focus on forward selection algorithms, which are incapable of correcting any error made by these algorithms. Hence, this paper develops a novel adaptive forward–backward selection (AFBS) algorithm for reconstructing sparse PC. The proposed algorithm by a reasonable combination of forward selection and adaptively backward elimination technique can efficiently correct mistakes made by earlier forward selection steps, which retains the most significant PC terms and discards redundant or insignificant ones. The accuracy of built PC metamodel is checked by a cross-validation procedure. As a consequence, the most significant PC terms are detected sequentially and corresponding PC coefficients are accurately recovered. It largely enhances the sparsity of PC and improves the prediction accuracy compared to the popular forward selection algorithms, e.g., least angle regressions (LARs). To validate the efficiency of the proposed algorithm, a complex analytical function with Gaussian distribution inputs and two challenging aerodynamic applications including a sonic boom propagation analysis considering atmospheric uncertainty and a natural-laminar-flow (NLF) airfoil computation under both geometrical and operational uncertainties are elaborated. With an in-depth comparison with some popular PC reconstruction methodologies, the performance of the devised AFBS method is assessed comprehensively. The results demonstrate that the proposed AFBS method can efficiently identify the significant PC contributions describing the problems, and reproduce sparser PC metamodel and more accurate UQ results than those classical full PC and LARs methods.