Vermicompost can play an effective role in plant growth and development and also in reducing harmful effects of various environmental stresses on plants. This study was carried out with aim of the investigation on the interaction effects between vermicompost and salinity on photosynthesis, transpiration rate and water use efficiency of bean (Pharsalus vulgaris L. cv. Light Red Kidney) cultivar, at seedling and flowering growth stages. Five different volumetric ratios of vermicompost and sand, including: 0: 100, 10: 90, 25: 75, 50: 50 and 75: 25 and four levels of salinity (20, 40, 60 and 80 mmol.l-1 NaCl), along with control were conducted based on randomized complete block design with three replications, at the Research Greenhouse, Faculty of Agriculture, Ferdowsi University of Mashhad, during year of 2010. Bean seeds were cultured in plastic pots and the photosynthesis and transpiration rate, water use efficiency (WUE) and intracellular CO2 concentration were measured. Hoagland's nutrient solution was used during the growth period of plant in order to supply nutrient requirements. Results showed that salinity decreased and vermicompost increased photosynthesis rate of plant. In the flowering stage, vermicompost in all ratios, significantly increased water use efficiency in different levels of salinity compared to the control plants. In the seedling stage, 10 and 25% of vermicompost and in the flowering stage almost all of the ratios ameliorated the negative effects of salinity on plant photosynthetic rate.Vermicompost probably can play an effective role in reducing harmful effects of various environmental stresses such as salinity on plants due to the porous structure, high water storage capacity, having hormone-like substances and plant growth regulators, and also high levels of macro and micro nutrients. In this experiment, vermicompost improved the photosynthetic rate in plants exposed to salinity.