Alveolar type 2 (AT2) cells are heterogeneous cells, with specialised AT2 subpopulations within this lineage exhibiting stem cell properties. However, the existence of quiescent, immature cells within the AT2 lineage that are activated during lung regeneration is unknown.SftpcCreERT2/+;tdTomatoflox/floxmice were used for the labelling of AT2 cells and labelled subpopulations were analysed by flow cytometry, quantitative PCR, assay for transposase-accessible chromatin using sequencing (ATAC-seq), gene arrays, pneumonectomy and culture of precision-cut lung slices. Single-cell RNA-sequencing (scRNA-seq) data from human lungs were analysed.In mice, we detected two distinct AT2 subpopulations, with low tdTomato level (TomLow) and high tdTomato level (TomHigh). TomLowcells express lower levels of the AT2 differentiation markersFgfr2bandEtv5, while TomHigh, asbona fidemature AT2 cells, show higher levels ofSftpc,Sftpb,Sftpa1,Fgfr2bandEtv5expression. ATAC-seq analysis indicates that TomLowand TomHighcells constitute two distinct cell populations, with specific silencing ofSftpc,Rosa26and cell cycle gene loci in the TomLowpopulation. Upon pneumonectomy, the number of TomLowbut not TomHighcells increases and TomLowcells show upregulated expression ofFgfr2b,Etv5,Sftpc,Ccnd1andCcnd2compared to Sham. TomLowcells overexpress programmed cell death 1 ligand 1 (PD-L1), an immune inhibitory membrane receptor ligand, which is used by flow cytometry to differentially isolate these two subpopulations. In the human lung, data mining of a recent scRNA-seq AT2 data set demonstrates the existence of aPD-L1Pospopulation. Therefore, we have identified a novel population of AT2 quiescent, immature progenitor cells in mouse that expand upon pneumonectomy and we have provided evidence for the existence of such cells in human.