Salinization is of major global concern due to its effect on stream biota, and ecosystem functions and services. In small streams, litter decomposition is a key ecosystem-level process driven by decomposers, mainly fungi (aquatic hyphomycetes), which link litter and invertebrates. Here we assessed the effects of an environmentally relevant range of salt additions (0, 2, 4, 8, 16gL NaCl) on (1) fungal growth and species-specific reproductive output and (2) fungal mediated-decomposition of Quercus robur leaves. Growth rates of eight out of nine species of aquatic hyphomycetes were negatively affected by salinity at concentrations ≥4gL. EC50s were species-specific and ≥7.80gL. Distinct thresholds were observed for reproduction: only five species sporulated at 2gL, and a single one (Flagellospora curta) sporulated at 4 and 8gL NaCl. Based on these results, we evaluated if tolerant fungal assemblages, with increasingly fewer species (9, 5, 1), were able to maintain similar functional functions and processes at the different salt levels. No significant differences were found in oak mass loss or sporulation rates at 0 or 2gL NaCl; a clear inhibition of both parameters was observed at the highest concentrations (i.e., 4 and 8gL NaCl). Different dominance patterns in multi-species fungal assemblages may determine bottom-up impacts on the stream food webs through effects on detritivore feeding preferences. Specific growth rate, characterized by RNA concentration, was higher in the single species, at the highest salt-concentration, and lower in the 9-species assemblage. Respiration was almost 2-times higher in mixed assemblages without added salt. Under salt-contamination, trade-offs between growth and sporulation seem to guarantee high levels of fungal growth and decomposition, particularly in multi-species assemblages. In the presence of salt contamination, aquatic hyphomycetes, even at reduced diversity, remain important drivers of leaf decomposition and ensure organic matter recycling.