Tolerance of Anabaena sphaerica isolated from semi- arid wastelands was studied in response to salinity ranging from EC 5 to 15 dS/m, in terms of biomass and concentrations of chlorophyll, carotenoids, phycobilins, lipids and proteins in the cells. Major photosynthetic pigment chlorophyll was not significantly affected by salinity, though other pigments declined in concentration. Biomass and proteins decreased, whereas total sugars increased many folds and lipid concentration was also enhanced with increasing salinity indicating salt tolerance response of the cyanobacterium.