The response of alfalfa to water and salinity stress differs during the whole growth period, and water stress has the most severe effects on the yield of alfalfa at the branching stage. However, the presence of soil salt can also enhance its drought resistance and alleviate the impact of water stress on yield. Thus, information on the responses of aboveground biomass, water-use efficiency and osmolytes to water and salinity stress at the branching stages of alfalfa development is urgently required. A pot experiment that combined three irrigation levels of 55–70% (W1), 70–85% (W2) and 85–100% (W3) of field capacity (FC) and four salinity levels was conducted in Dengkou County, Inner Mongolia, China, in 2018 and 2019. The percentage of mixed salt (NaCl:Na2SO4 = 1:1 [w/w]) added for the salinity treatments was 0, 2, 4 and 6% of the soil dry weight and was designated as S0–S3, respectively. The water consumption, biomass, osmolytes, such as proline and Na+, and the activities of antioxidant enzymes, such as superoxide dismutase (SOD) and peroxidase (POD), of alfalfa were measured during its early flowering stage. In general, the plant height, aboveground biomass, root biomass and water consumption of alfalfa increased with the decrease in soil salinity and increase in the amount of irrigation applied. When the salt >3 g kg−1, alfalfa could improve its stress resistance by increasing the contents of proline and Na+ and the activity of POD and decreasing the activity of SOD, but the aboveground biomass and water consumption decreased. However, alfalfa has a certain cross adaptation ability under water and salt stress at the branching stage, particularly when salt is less than 3 g kg−1. Compared with single water stress, adding an appropriate amount of salt (≤3 g kg−1) increased the contents of proline and Na+ and the activities of SOD and POD, which led to water consumption and aboveground biomass of alfalfa increases of 11.93% and 17.51%, respectively. In conclusion, the alfalfa was tolerant to moderate (3 g kg−1) salt stress. The alfalfa with higher proline, SOD and POD activity and Na+ was better able to yield well under salt stress. Meanwhile, combined with moderate irrigation (70–85% FC), the productivity of alfalfa was improved better. The results can provide a theoretical basis for the utilization of alfalfa in salinized land.