This study compared the performance of Eucalyptus camaldulensis Dehnh. planted at four spacings (2.0 m × 2.0 m, 2.5 m × 2.5 m, 3.0 m × 3.0 m, and 3.5 m × 3.5 m) at three experimental saline sites in Punjab province of Pakistan over 5 years and assessed the impact of these planting densities on soil salinity amelioration. Tree response was assessed by measuring survival, height, and diameter at breast height (DBH) of trees at 1, 2, and 5 years as well as wood volume after 5 years. Wood volume per hectare, height, and DBH were greater at sites I and II than at site III. The 3.0 m × 3.0 m spacing resulted in taller trees, but DBH and wood volume were greater with the 3.5 m × 3.5 m spacing. The study confirmed that initial tree spacing or density has a significant impact on the subsequent height, DBH, and wood volume of E. camaldulensis plants. The study also showed that broad spacing could be a better option in saline environments. There was a definite reduction in soil salinity (electrical conductivity, ECe) at five soil depths after 5 years of tree growth at all sites and spacing treatments, with reductions varying from 46% to 47% at site I, 31% to 52% at site II, and 25% to 58% at site III. Soil ECewas generally higher in surface (0–15 cm) soils.