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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.
When we breathe in, oxygen passes through the walls of the alveoli and into the blood. Carbon dioxide and water vapor then travel the opposite direction. They are the main waste products that pass from the blood vessels (arteries) in the lungs, into the alveoli, through the windpipe and out the nose and mouth. The thin walls of the alveoli actually have two purposes. When we  breathe in, oxygen passes through the walls of the alveoli and into  the blood.