The separation of toxic effects of sodium (Na(+)) and chloride (Cl(-)) by the current methods of mixed salts and subsequent determination of their relevance to breeding has been problematic. We report a novel method (Na(+) humate) to study the ionic effects of Na(+) toxicity without interference from Cl(-), and ionic and osmotic effects when combined with salinity (NaCl). Three cereal species (Hordeum vulgare, Triticum aestivum and Triticum turgidum ssp. durum with and without the Na(+) exclusion gene Nax2) differing in Na(+) exclusion were grown in a potting mix under sodicity (Na(+) humate) and salinity (NaCl), and water use, leaf nutrient profiles and yield were determined. Under sodicity, Na(+)-excluding bread wheat and durum wheat with the Nax2 gene had higher yield than Na(+)-accumulating barley and durum wheat without the Nax2 gene. However, under salinity, despite a 100-fold difference in leaf Na(+), all species yielded similarly, indicating that osmotic stress negated the benefits of Na(+) exclusion. In conclusion, Na(+) exclusion can be an effective mechanism for sodicity tolerance, while osmoregulation and tissue tolerance to Na(+) and/or Cl(-) should be the main foci for further improvement of salinity tolerance in cereals. This represents a paradigm shift for breeding cereals with salinity tolerance.