Abstract Acute lung injury and acute respiratory distress syndrome (ALI/ARDS) are severe pulmonary inflammatory diseases that cause destruction and remolding of the lung epithelial barrier, which may lead to restriction of pulmonary functionality and/or death. Indole-3-carbinol (I3C), a naturally occurring Ahr ligand has been shown to ameliorate multiple inflammatory disorders. Our studies are aimed at determining whether treatment with the I3C affects reparative reepithelialization and restores lung functioning through an immune-mediated mechanism. Towards this, 5mg/kg of LPS was intranasally injected in C57BL/6 mice to induce ALI. Three hours following LPS administration, the mice were treated with 40mg/kg I3C. After 48 hours, we examined lung functions using Buxco plethysmography and noticed LPS + I3C treated-mice have similar functionality as naïve mice in multiple parameters including ratio of time peak expiratory flow (Rpef), rejection index (Rinx), and tidal volume (TV) basal pulmonary functions whereas LPS+vehicle treated mice showed alterations. Histopathological analysis revealed fibrotic tissue in lung sections of LPS + Vehicle administered mice, but not in LPS + I3C treated mice. In addition, I3C increased the expression of Th22 (CD3+CD4+IL22+) cells, which are key mediators of epithelial cell layer protection, antimicrobial peptide production, and reepithelialization improvement. I3C increased IL-22 expression in bronchoalveolar lavage fluid, and decreased the expression in miR-29b-2-5p transcript that directly regulates IL-22 expression. In conclusion, our studies suggest that Ahr ligand I3C alleviates lung injury by maintaining lung epithelium integrity which may be mediated by IL-22 secreting T cells.