Some dinoflagellates produce toxic secondary metabolites that correlate with increased resistance to grazers. The allocation costs of toxin production have been repeatedly addressed, but with conflicting results. Few studies have considered the potential costs of this defense to the photosystem, even though defense toxins (e.g., karlotoxins and brevetoxins) are closely linked to the photoprotective process. Here, we used chemical cues from copepods to induce paralytic shellfish toxin (PST) production in resource-limited Alexandrium minutum and quantitatively determined the growth rate and potential trade-offs with the photosystem process. The results show that grazer-induced, more toxic A. minutum had larger cell volume, lower cell division rate, and lower pigment content under nitrogen-limited conditions than control cells. In addition, predator cues led to a lower relative abundance of photoprotective xanthophylls and a reduced de-epoxidation efficiency of the xanthophyll cycle under high light conditions, reducing the ability of the cells to resist photodamage. Decreased photoprotective capacity may reflect an overlooked defense cost of toxin production.