As an example, epithelial targeted nanoparticle (NP) providing sustained drug and molecular probe delivery (nano-theranostic) can control neutrophil chemotaxis, fibrosis and protease mediated chronic emphysema while providing real time assessment of COPD lung disease. Drug, molecular probe, gene and/or short interfering RNA sequences are encapsulated within a nanoparticle vesicle. Targeting antibodies are attached onto the surface for transport to specific epithelial or inflammatory cells. The proposed nano-theranostic incorporates many functionalities, such as targeting molecules, a polymer shield, therapeutic agents and molecular probes.