Our objective was to determine the maximum effective rearing density for Atlantic salmon (Salmo salar) at 17.5°C, a temperature typically used in hatcheries to accelerate growth. We reared 5.8‐g (mean weight) parr for 80 d to final rearing densities of 14–55 kg/m2 (rearing unit bottom area) or 80–310 kg/m3 (rearing unit volume). Weight gain was slightly depressed in fish at a final rearing density of 26 kg/m2 (146 kg/m3), but mortality, food conversion, and gain in length were not affected. At densities greater than 26 kg/m2, fish growth was slower and food conversion was higher, but mortality was unaffected. Atlantic salmon may be reared at 17.5°C to densities of at least 14 kg/m2 (80 kg/m3) without adverse effects on growth and health, but final rearing densities should not exceed 26 kg/m2.