Parasite dilution occurs in varied systems, via multiple potential mechanisms. We used laboratory manipulation and field surveys to test for invader-induced parasite dilution via two specific mechanisms: host-host competition and encounter reduction. In the laboratory, single Aedes triseriatus larvae were exposed to one of eight combinations of: parasitic Ascogregarina barretti, +/-1 cohabiting Aedes albopictus larva during parasite exposure, and +/-1 cohabiting A. albopictus larva after infectious parasite removal. Larval infection intensity (predicted to decrease via dilution by encounter reduction) was not significantly affected by A. albopictus. Adult infection prevalence and intensity (predicted to decrease via dilution by host-host competition) were significantly greater with A. albopictus, suggesting parasite amplification by interspecific competition, an effect potentially mediated by competition increasing A. triseriatus development time. In the field, we tested for effects of potential dilution host abundances on prevalence and abundance of A. barretti in A. triseriatus larvae. Piecewise path analysis yielded no evidence of host-host competition impacting parasitism in the field, but instead indicated a significant direct negative effect of Aedes spp. abundance on parasite abundance in A. triseriatus, which is consistent with dilution via encounter reduction in the field, but only in tree holes, not in man-made containers. Our results are consistent with the hypothesis that a noncompetent invader can alter the native host-parasite relationship, but our laboratory and field data yield differing results. This difference is likely due to laboratory experiment testing for per capita effects of dilution hosts on parasitism, but field analysis testing for effects of dilution host abundance on parasitism. Individually, host-host competition with the invader amplifies, rather than dilutes, parasite success. In contrast, our path analysis is consistent with the hypothesis that dilution of parasitism results from increased abundance of noncompetent hosts in the field.