Appropriate tree species and planting methods can help rehabilitation of arid areas — that are characterized by low rainfall, high evapotranspiration demands, highly saline ground waters and calcareous subsoils. The growth of Acacia nilotica and Dalbergia sissoo saplings planted in irrigation furrows in such an arid zone of northwest India was not affected adversely by irrigation with saline water of EC W 10.5 dS m−1. The growth of A. nilotica, measured in terms of sapling survival, plant height and biomass yields, was better than that of D. sissoo. Increasing the period of irrigation from the recommended practice of irrigating only in the first year dry season (October–June) to second and third dry seasons (years) improved the sapling survival, growth and biomass (two-to-three-fold) and water use efficiency (two-to-four fold). Most of the salts added with saline irrigation were accumulated below the irrigation channels and were pushed laterally during the monsoon season. The results indicate that the furrow planting technique could be adopted as an afforestation practice in view of the creation of favourable water and salt regimes and their impact on the establishment of trees saplings. Irrigation water supplies for a minimum of intitially two years after transplanting seemed necessary.