The emergence of novel severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) pandemic poses a never before seen challenge to human health and economy. Considering its clinical impact with no streamlined therapeutic strategies in sight, it is crucial to understand the infection process of the SARS-CoV-2. Our nondescript knowledge of the foresaid mechanisms impedes development of alternative therapeutics to address the pandemic. This aspect can be addressed by modeling SARS-CoV-2 infection in the human context to facilitate drug screening and discovery. Human induced pluripotent stem cells (iPSCs) derived lung epithelial cells and organoids recapitulating the features and functionality of the alveolar cell types can serve as an in vitro human model and screening platform for SARS-CoV-2. Recent studies suggest an immune system asynchrony leading to compromised function and proportion of specific immune cell types in Coronavirus disease (COVID) -19 patients. Replenishing these specific immune cells may serve as useful effectors against SARS-CoV-2 infection. Here, we review protocols for deriving lung epithelial cells, alveolar organoids and specific immune cells types such as T- lymphocytes and natural killer (NK) cells from iPSCs with the aim to aid investigators to make relevant in vitro models of SARS-CoV-2 along with the possibility derive immune cells types to treat COVID-19.