A 71-year-old man was admitted to our hospital because atelectasis was observed on chest X-ray. Histological examination by video-assisted thoracoscopic surgery revealed schwannoma. Five years later, chest computed tomography (CT) scan showed cystic lesions in the right upper lobe and mediastinal lymphadenopathy. Laboratory tests showed high serum carcinoembryonic antigen (CEA) levels. We performed lymph node biopsy by mediastinoscopy and partial right upper lobe resection. The histological examination did not reveal malignant findings. After one and a half years, CT revealed cystic lesions and infiltrative shadows in the right lower lobe. Histological re-examination of the surgical lung biopsy showed follicular bronchiolitis. After two months of prednisolone treatment, serum CEA levels decreased. After four months, cysts and infiltrate shadows had disappeared on CT. After three years, no recurrent signs were observed. In summary, we experienced a case of follicular bronchiolitis with abnormally high serum CEA levels.