The effects of saline water containing 0, 50, 100, and 150 mM sodium chloride (NaCl), and 100 mM NaCl + 100 mM potassium (K) on photosynthesis, water relations, and ion and carbohydrate content of olive (Olea europaea L.) cultivars 'Koroneiki' and 'Mastoidis' were studied on five-year-old trees. Salinity increased sodium (Na+) and chloride (Cl-) in tissues of both cultivars, but more so in 'Koroneiki' than in 'Mastoidis.' Salt-toxicity symptoms were observed at 100 and 150 mM, but not in plants receiving extra K. In salt-stressed plants, leaf water potential declined, whereas turgor potential remained positive due to a rapid decrease in osmotic potential. Salinity increased mannitol content up to 41.3% in 'Mastoidis' and 15.8% in 'Koroneiki', but reduced starch content in leaves. Photosynthetic rates fell significantly with increasing salinity in both cultivars, but more so in ` Koroneiki' than in 'Mastoidis'. Potassium supplements reduced the concentration of Na+ and increased the concentrations of K+ in leaves, but decreased photosynthesis.