• Fndc5 modification enhances MSC retention, proliferation, and migration in sepsis-induced ALI models.
• MSCs-Fndc5 treatment attenuates lung inflammation, edema, fibrosis, and preserves vascular integrity in vivo.
• In vitro, Fndc5 modification mitigates LPS-induced endothelial injury via PI3K/AKT pathway activation.
• This study provides a novel genetic modification strategy to optimize MSC-based therapy for ARDS.