Salt water intrusion and rising soil salnity are threatening food and livelihood security of paddy farmers in coastal Bangladesh. Visible manifestations of these challenges are degraded soils and chronic decline in tradtional farming, as it is becoming an increasingly infeasible means of livelihood. Promoting saline-tolerant paddy varieties (STRV) has been one of the major focuses of the Bangladesh Rice Research Institute (BRRI) and the attention to the problem has been intensified in recent years through a partnerhsip with a consortium of CGIAR centers. Howewer, robust empirical analysis has hitherto been limited. Using farm level data, this paper analyzes the determinants and impacts of the adopting these new varieties. We use a multi-variate logit model to identify the constraints to adoption, and Propensity Score Matching (PSM) and Endogeneous Switching Regression methods to assess the impacts on yeilds, and net income of the paddy farmers. Results show that adopting saline-tolerant rice varieties raises crop yield by an average of 1 to 2 tons per hectare, equivalent to a net income increase of about US$100 per hectare of cultivated land. Yet, adoption rates remain low due to several institutional constraints and perhaps a lack of nudging farmers in the scaling up strategies. Robustness of the results are tested, and the implications are discussed.