Salinity is a major environmental stress which is reducing crop yields as well as tree growth particularly in arid and semi-arid zones. In Pakistan, large cultivated land is affected by various degrees of soil salinity and sodicity. There exists a great diversity among plant species for their salt tolerance. Screening of plant species for salt-affected soils is based on their survival and relative growth on higher salinity levels. Keeping these facts in view, three studies were planned to explore the salinity tolerance and response on water stress of two different conocarpus species viz Conocarpus lancifolius and Conocarpus erectus. In the first experiment, four month old seedlings of both species were transplanted in half strength Hoagland nutrient solution having ,five treatments (control, 100, 200, 300 and 400 mMNaCl). The data regarding growth and ionic composition (Na+ and K+) showed that Conocarpus lancifolius was more tolerant to salinity than Conocarpus erectus. The seedlings of Conocarpus erectus and Conocarpus lancifolius survived at 400 mMNaCl and decreased in plant height and fresh weight due to higher salt concentration were 62%, 67% and 68%, 73%, respectively. Both the species were further studied under the combination of salinity and water stress in the pots at half and double field capacity, where Conocarpus lancifolius proved to be better tolerant to salinity and water stress. In the final study these species were grown in the salt affected field and their annual growth and ionic data were recorded for two years. The changes in the soil chemical and physical properties were also determined at these intervals. The comparison of both species indicated that Conocarpus lancifolius produced more biomass and caused marked reduction in the soil chemical properties like pHs, ECe and SAR as compared to Conocarpus erectus, due to more addition of organic matter and rhizosphere acidification .On the other hand the physical properties like bulk density and infiltration rate were also improved more under Conocarpus lancifolius than under Conocarpus erectus. Results revealed that conocarpus species will prove to be a good source of timber, fuel wood and forage for livestock as well as rehabilitating barren lands.