Dispersal of organisms between patches is a common phenomenon in ecology and plays an important role in predator–prey population dynamics. We propose a nonsmooth Filippov predator–prey model in a two-patch environment characterized by a generalist predator-driven intermittent refuge protection of an apprehensive prey along with a balanced dispersal of the prey between refuge and nonrefuge areas. By employing qualitative techniques of nonsmooth dynamical systems, we see that the switching surface is a repeller whenever the interior equilibria are virtual, causing long-term population fluctuations. We find that the level of prey vigilance and the rate of prey dispersal play pivotal roles in the total harvesting yield. We observe that a sustainable high harvesting yield is possible when the prey is less vigilant and obtain the harvesting efforts for maximum sustainable total yield (MSTY). We further modify the model by considering a continuous threshold predator-driven prey dispersal and show that the model exhibits a Hopf bifurcation when the level of prey vigilance exceeds some critical threshold value. By comparing the dynamics of the two models we see that for a sustainable high harvesting yield of the system with continuous threshold dispersal, the prey needs to be highly vigilant compared to that of the system with intermittent dispersal of the prey. Further, we find numerically that the estimated MSTY from both models remains the same.