In the present study the effect of supplementing peat moss at different salinities with sheep manure vermicompost on survival, growth and photosynthesis of Tamarind plantlets (Tamarindus indica) was investigated in a greenhouse experiment. Plantlets were grown in peat substrate (peat moss) added with 0, 20, 40, 60 and 80 mM NaCl and supplemented with or without 10% (v/v) vermicompost. Without vermicompost, the survival of the plantlets was 20% after 80 mM NaCl addition, but with vermicompost it was 85%. Without vermicompost, plant growth was reduced two fold at 20 mM NaCl, but with vermicompost no inhibitory effect was found. Photosynthesis was reduced in the plantlets in the 20 mM NaCl treatment without vermicompost, but no inhibition was found when peat moss was added with vermicompost. It was found that vermicompost has a huge potential to limit negative effect of salinity on growth of tamarind plants.