The number of coral reefs around the world is slowly declining due to environmental and anthropogenic reason, and Pterois volitans also put extra stress on coral reefs by decreasing the number of herbivorous fishes (parrotfish). Moreover, uncontrolled growth of algae interrupts the growth of corals since corals and algae grow together on algal turf. Here Parrotfish also play an important role in the enhancement of corals by grazing. In this paper, parrotfish and P-volitans are taken as prey and predator, respectively, and the fear effect on the dynamics of the system is investigated. The effect of prey refuge is also shown. Constant harvesting policy for both fishes is included. Stable coexistence region for two parameter spaces: Hopf bifurcation and saddle-node bifurcation, is shown and formulated for the system. Numerical simulations are illustrated to verify the authenticity of the analytical calculations.