A 3-day-old Thoroughbred foal developed a large, air-distended, midcervical swelling that was diagnosed as a congenital tracheal bronchus with associated ectopic lung tissue. Clinical signs consisted of a compressible air-filled sac that enveloped the trachea. The nature and extent of the defect were evaluated endoscopically and radiographically. Surgical resection of the bronchus and associated air-filled sac resulted in a functionally and cosmetically acceptable outcome.