The effects of salinity and waterlogging on stomatal conductance, net photosynthesis and transpiration of 3-month-old Eucalyptus camaldulensis Dehnh. and Eucalyptus lesouefii Maiden seedlings were studied under greenhouse conditions. Under non-saline conditions, waterlogging induced stomatal closure in both species. However, the stomata of E. camaldulensis reopened after five weeks, when adventitious roots were produced. Relative to that of controls, height growth of waterlogged seedlings was greater in E. camaldulensis than in E. lesouefii, as were rates of photosynthesis and transpiration. In a freely drained medium, high salinity reduced rates of seedling height growth and photosynthesis, relative to those in controls, less in E. lesouefii than in E. camaldulensis. In both species, height growth, stomatal conductance and photosynthetic rate were lowest under conditions of saline waterlogging.