Abstract: Compositions and methods for use for treating, pulmonary hypertension, in particular neonatal pulmonary hypertension and early lung inflammation, are described. In a first embodiment, the composition comprises pulmonary vasodilators and mitochondrial targeted antioxidants in mixture with a lung surfactant. Preferably, the composition comprises one or more chemicals selected from the group consisting of a long-acting nitric oxide donors, antioxidants, endothelin-1 receptor antagonists, and antithromboxanes in mixture with a lung surfactant. In a second embodiment, the present invention provides a composition for treating neonatal pulmonary hypertension and early lung inflammation in mammals who do not respond to nitric oxide treatment alone. In this embodiment, the composition comprises liposomes comprising a pulmonary or lung surfactant and which contains vasodilators and chemicals which modulate development of acute inflammation.