Effect of salinity (sodium chloride) on growth, biological nitrogen fixation (BNF) and salinity tolerance of five subterranean clover cultivars (Goss, York, Riverina, Denmark, and Golburn) was investigated using a factorial experiment in randomized complete blocks with three replicates. Salinity treatments were 0, 0.01, 0.02 m sodium chloride solutions. Sand culture with combination of Haugeland nutrient solution without nitrogen was used. Seedlings were harvested after 60 days and nodule number, leaf, root and shoot dry weights, leaf area, K+/Na+ ratio, nitrogen percentage and nitrogen yield were measured. Results showed that with increasing salinity, all the traits decrease, but specific leaf weight increases. Similar dry matter production was observed in saliniy treatments of 0 and 0.01 m sodium chloride. Mean comparison showed that cv. Goss is better than other cultivars with respect to nodule number, leaf area, dry weights, nitrogen percentage and nitrogen yield. Golburn was the worst. Highest and lowest decrease in K+/Na+ ratio was observed in Goss and Golburn, respectively. Calculation of sensitivity index showed that York and Golburn have the lowest tolerance to salinity. It seems that cv. Goss (with highest dry matter production) and York (with lowest sensitivity index) is promised for breeding efforts. A positive correlation was observed between all the traits and K+/Na+ ratio. It was concluded that regulation of K+/Na+ ratio is not the mechanism of salinity tolerance in cv. York.