Compacted clay soils are used as barriers in geoenvironmental engineering applications and are likely to be exposed to salinization and desalinization cycles during life of the facility. Changes in pore fluid composition from salinization and desalinization cycles induce osmotic suction gradients between soil-water and reservoir (example, landfill/brine pond) solution. Dissipation of osmotic suction gradients may induce osmotic swelling and consolidation strains. This paper examines the osmotic swelling and consolidation behaviour of compacted clays exposed to salinization and desalinization cycles at consolidation pressure of 200 kPa in oedometer assemblies. During salinization cycle, sodium ions of reservoir fluid replaced the divalent exchangeable cations. The osmotic swelling strain developed during first desalinization cycle was 29-fold higher than matric suction induced swelling strain of the compacted specimen. Further, the diffusion controlled osmotic swelling strain was 100-fold slower than matric suction-driven swelling process. After establishment of ion-exchange equilibrium, saturated saline specimens develop reversible osmotic swelling strains on exposure to desalinization cycles. Likewise the saturated desalinated specimen develops reversible osmotic consolidation strains on exposure to cycles of salinization. Variations in compaction dry density has a bearing on the osmotic swelling and consolidation strains, while, compaction water content had no bearing on the osmotic volumetric strains. © 2012 Springer Science+Business Media Dordrecht.