Soil and water salinity are among the most fatal environmental challenges that threaten agricultural production worldwide. This study investigated the potential impact(s) of soil amendment using composted bagasse and/or foliar application of cyanobacteria-based bio-stimulants (Arthrospira platensis, also known as Spirulina platensis) to combat the harmful effect(s) of using saline water to irrigate barley plants grown in salt-affected soils during 2020/2021 and 2021/2022. Briefly, the dual application of composted bagasse and cyanobacteria-based bio-stimulants significantly improved the soil properties, buffered the exchangeable sodium percentage (ESP), and enhanced the activity of soil enzymes (urease and dehydrogenase). Moreover, both treatments and their combination notably augmented the water relations of barley plants under salinity stress. All treatments significantly decreased stomatal conductance (gs) and relative water content (RWC) but increased the electrolyte leakage (EL) and balanced the contents of Na+ and K+, and their ratio (K+/Na+) of barley leaves under salinity stress compared with those irrigated with fresh water during the 2020/2021 and 2021/2022 seasons. Additionally, composted bagasse and cyanobacteria-based bio-stimulants diminished the oxidative stress in barley plants under salinity stress by improving the activity of antioxidant enzymes, including superoxide dismutase (SOD), catalase (CAT), and peroxidase (POX). Consequently, the combination of composted bagasse and cyanobacteria extract resulted in superior yield-related traits such as spike length, number of grains per spike, 1000-grain weight, grain yield, straw yield, and harvest index. Collectively, our findings suggest that the integrative application of composted bagasse and cyanobacteria is promising as a sustainable environmental strategiy that can be used to improve soil properties, plant growth, and productivity of not only barley plants but also maybe other cereal crops irrigated with saline water in salt-affected soil.