Aim: To study of lung function in children residing in puffed rice industrial area. Material and methods: This cross sectional study was done in the puffed rice industrial area of Basha nagar area of Davanagere city. Lung function was recorded with the use of a spirometer (RMS Helios 401). Spirometry was conducted according to the recommendations of the American Thoracic Society. Forced expiratory volume 1 (FEV1) will be measured first and proceeded only if FEV1 IS > 80%. FEV1, forced vital capacity (FVC), forced expiratory flow between 25 and 75 percent of the FVC (FEF25–75) and the FEV1:FVC ratio was used as the primary variables of lung function Results: only a very small number of subjects had decreased FVC, FEV1 and FEV1/FVC. Majority of children had normal values for theses parameters, even though with wide range of values. When PFT parameters were compared between two groups with BMI <18.5 and ≥18.5 kg/m2 , there were no statistical significant differences in any of the parameters. Based on pulmonary function test results, 5.7% of children with presence of AM carbon had moderate obstructive airway disease; the prevalence was 5% in those without AM carbon. There was so statistical difference between these groups (p >0.05). Of children with presence of AM carbon, 20.7% had restrictive airway disease; the prevalence was 24.6 % in those without presence of AM carbon. No statistical difference found between these two groups. Conclusion: In this cross-sectional study, we found a dose-dependent, inverse association between the carbon content of airway macrophages and FEV1, and FVC in healthy children. Since we directly assessed the carbon content of airway macrophages, our data strengthen the evidence for a causal association between the inhalation of carbonaceous particles and impaired lung function in children.