This paper is concerned with the problems of stability and stabilization for discrete-time periodic linear systems subject to input saturation. Both local results and global results are obtained. For local stability and stabilization, the so-called periodic invariant set is used to estimate the domain of attraction. The conditions for periodic invariance of an ellipsoid can be expressed as linear matrix inequalities (LMIs) which can be used for both enlarging the domain of attraction with a given controller and synthesizing controllers. The periodic enhancement technique is introduced to reduce the conservatism in the methods. As a by-product, less conservative results for controller analysis and design for discrete-time time-invariant systems with input saturation are obtained. For global stability, by utilizing the special properties of the saturation function, a saturation dependent periodic Lyapunov function is constructed to derive sufficient conditions for guaranteeing the global stability of the system. The corresponding conditions are expressed in the form of LMIs and can be efficiently solved. Several numerical and practical examples are given to illustrate the theoretical results proposed in the paper. (C) 2011 Elsevier Ltd. All rights reserved.