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Tiny air sacs where the exchange of gases between air blood takes place. Tiny air sacs found inside the lungs through which oxygen enters and carbon dioxide leaves through the bloodstream during breathing; found on the tips of the bronchioles. Bronchi The trachea divides into these right and left branches providing a passageway for air.
1 into one of the lungs. 2  After passing into the many bronchioles, it finally arrives into some of the millions of tiny sacs called alveoli. 3  This is where gas exchange takes place-oxygen passes out of the air into the blood, and carbon dioxide passes out of the blood into the air in the alveoli.