Saline water irrigation contributes significantly to forage yield. However, the acceptable salinity levels for saline water irrigation of tall wheatgrass remains unclear. In this study, field supplemental irrigations of transplanted-tall wheatgrass with saline drainage waters having salinities of electrical conductivity (ECw) = 2.45, 4.36, 4.42, and 5.42 dS m−1 were conducted to evaluate the effects of saline water irrigation on forage yield and soil salinization. In addition, the effects of plastic film mulching, fertilization, and saline water irrigation on sward establishment of seed-propagated tall wheatgrass were determined. Finally, a pot experiment was carried out to confirm the above field results. The results showed that two irrigations with ECw = 2.45 and 4.36 dS m−1 saline waters produced the highest dry matter yield, followed by one irrigation with ECw = 4.42 or 5.42 dS m−1. After rainfall leaching, the soil EC1:5 was reduced by 41.7–79.3% for the saline water irrigation treatments. In combination with saline water irrigation, plastic film mulching promoted sward establishment and enhanced the plant height and dry matter yield of seed-propagated tall wheatgrass, while fertilization played a marginal role. However, two irrigations with ECw = 7.13 and 4.36 dS m−1 saline waters resulted in rates of 3.2% and 16.0% of dead plants under the mulching and no mulching conditions, respectively. Furthermore, a pot experiment demonstrated that irrigation with ECw = 5.79 dS m−1 saline water led to the lowest reduction in forage yield and the highest crude protein content in leaves. However, the plants irrigated with ECw ≥ 6.31 dS m−1 saline water enhanced soil salinity and reduced the plant height, leaf size, and gas exchange rate. Conclusively, one irrigation with ECw ≤ 5.42 dS m−1 and SAR ≤ 36.31 saline water at the end of April or early May could be acceptable for tall wheatgrass production and minimize the soil salinization risk in the coastal saline–alkaline land around the Bohai Sea.