Overall growth characteristics of many plant species cultivated in soil affected by salinity could be alleviated by the application of potassium nitrate (KNO3) to the soil. The aim of this research was to investigate salt-tolerance in a salt-sensitive rice cultivar, 'Pathumthani 1' (PT1), in response to the exogenous application of 11.8 mM KNO3, in comparison to 'Homjan' (HJ), a salt tolerant cultivar. Water potential (ψw) in both the roots and leaves of PT1 seedlings under salt stress dropped significantly, while it was maintained in PT1 pretreated with KNO3, and similarly in HJ. The reduction of leaf water potential was positively related to total chlorophyll degradation, leading to diminished chlorophyll fluorescence, directly affecting growth in plants exposed to salt stress. In salt-sensitive PT1, the application of 11.8 mM KNO3 improved salt-tolerance via the conservation of water use efficiency, the maintenance of photosynthetic pigments, enhancement of chlorophyll a fluorescence, and stimulation of growth characters. © 2013 Copyright Taylor and Francis Group, LLC.