Neonatal broncho-pulmonary dysplasia (BPD) is a common chronic lung disease in premature infants, with a complex pathogenesis and limited treatment options, severely affecting health. In recent years, targeted autophagy and mesenchymal stem cell (MSC) have received attention as potential therapeutic approaches. Autophagy is crucial in the development of BPD, as it can improve pathological processes such as alveolarization disorders, abnormal pulmonary vascular development, and inflammatory responses through targeted regulation, and enhance the pulmonary microenvironment. Meanwhile, MSC is considered to have promising applications in promoting lung development and repair due to immune regulatory properties and paracrine functions. This article reviews the mechanisms and synergistic effects of targeted autophagy and MSC therapy for BPD, providing a theoretical basis for optimizing clinical treatment strategies for BPD and improving the quality of life of premature infants.