German chamomile (Matricaria chamomilla Linn.), an annual herb of varied medicinal value belonging to the family Asteraceae Results of the present experimental study revealed that the establishment, growth and yield of German chamomile are adversely affected by the build up of salinity in the growing medium. The response of the two salinity types however, was indifferent in influencing the maturity date. Significant decline in number of flower heads/plant and the fresh weight as well as dry weight of flower heads/plant occurred with the progressive increase of salinity levels in the growing medium. The sulphate dominated salinity in this regard was found more depressive than chloride dominated salinity. The accumulation of TSC as well as proline under osmotic stress is ascribed to osmotic adjustment in plants as these help to bring down the osmotic potential of the cell sap, enabling the uptake of water in cells. German chamomile appears to be highly salt tolerant medicinal herb as its plants survived and reproduced at the highest salinity level (16 dSm-1) used irrespective of the salinity types. This herb can, therefore, be grown in crop fields or wastelands affected by salts.