Chaetomorpha valida, filamentous green tide algae, poses a significant threat to both aquatic ecosystems and aquaculture. Vibrio alginolyticus Y20 is a new algicidal bacterium with an algicidal effect on C. valida. This study aimed to investigate the physiological and molecular responses of C. valida to exposure to V. alginolyticus Y20. The inhibitory effect of V. alginolyticus Y20 on C. valida was content dependent, with the lowest inhibitory content being 3 × 105 CFU mL−1. The microscopic results revealed that C. valida experienced severe morphological damage under the influence of V. alginolyticus Y20, with a dispersion of intracellular pigments. V. alginolyticus Y20 caused the decrease in chlorophyll-a content and Fv/Fm in C. valida. At the molecular level, V. alginolyticus Y20 downregulated the expression of genes related to photosynthetic pigment synthesis, light capture, and electron transport. Furthermore, V. alginolyticus Y20 induced oxidative damage to algal cells. The production of reactive oxygen species significantly increased after 11 days of exposure. Malondialdehyde content significantly increased, and the cell membranes were severely damaged by lipid peroxidation. The content of superoxide dismutase and peroxidase also markedly increased, whereas catalase content decreased significantly. Additionally, peroxisomes were inhibited due to the downregulation of PEX expression, leading to irreversible oxidative damage to algal cells. Our findings provided a new theoretical basis for exploring the interaction between algicidal bacteria and green tide algae at the molecular level.