Chemical dispersants can be a useful tool to mitigate oil spills, but the potential risks to sensitive estuarine species should be carefully considered. To improve the decision making process, more information is needed regarding the effects of oil spill dispersants on the health of coastal ecosystems under variable environmental conditions such as salinity. The effects of salinity on the toxicity of two oil dispersants, Corexit® 9500 and Finasol® OSR 52, were examined in this study. Corexit® 9500 was the primary dispersant used during the 2010 Deepwater Horizon oil spill event, while Finasol® OSR 52 is another dispersant approved for oil spill response in the U.S., yet considerably less is known regarding its toxicity to estuarine species. The grass shrimp, Palaemonetes pugio, was used as a model estuarine species. It is a euryhaline species that tolerates salinities from brackish to full strength seawater. Adult and larval life stages were tested with each dispersant at three salinities, 5, 20, and 30 ppt. Median acute lethal toxicity thresholds and oxidative stress responses were determined. The toxicity of both dispersants was significantly influenced by salinity, with greatest toxicity observed at the lowest salinity tested. Larval shrimp were significantly more sensitive than adult shrimp to both dispersants, and both life stages were significantly more sensitive to Finasol than to Corexit. Oxidative stress in adult shrimp, as measured by increased lipid peroxidation activity, occurred with exposure to both dispersants. These data will assist environmental managers in making informed decisions regarding dispersant use in future oil spills. •oil dispersant toxicity may vary with abiotic conditions.•toxicity values for two oil dispersants determined at various salinities.•increasing salinity decreased dispersant toxicity in the grass shrimp, P. pugio.•larval P. pugio were more sensitive to dispersants than adult P. pugio.