A new classification system for chronic rejection in lung transplantation was recently proposed. Chronic lung allograft dysfunction (CLAD) is regarded as chronic rejection after excluding other causes of allograft dysfunction. CLAD is divided into obstructive CLAD (bronchiolitis obliterans syndrome) and restrictive CLAD (restrictive allograft syndrome). In this review, we will review the latest concepts and current controversies regarding the new CLAD terminology, diagnostic approach, risk factors and possible treatment options.