Airway homeostasis, repair, and regeneration are imperfectly understood processes involving the proliferation and differentiation of endogenous lung stem cells. Here, we establish that epithelial Cell adhesion molecule 1 (Cadm1) regulates the growth and differentiation of airway basal cells, previously identified as lung stem cells. Immunohistochemistry and gene expression analysis reveals that Cadm1 is broadly expressed throughout the murine tracheobronchial epithelium, exhibits transient downregulation concomitant with airway injury, and is subsequently restored during basal cell differentiation. Using Cadm1 null (KO) and keratin 14 (K14)-specific Cadm1 overexpressing transgenic mice, we demonstrate that maintaining Cadm1 expression reduces basal stem cell proliferation after tracheal polidocanol injury, whereas Cadm1 deletion causes increased ciliated cell differentiation and sustained downstream Stat3 signalling. Altogether, this study defines a previously uncharacterised role for Cadm1 in directing airway basal cell homeostasis and repair via modulation of Stat3 activity.