Coral loss is a major element of global ecological change in the oceans that may shape the behavior of keystone species such as habitat-attached animals. Farming damselfishes cultivate and aggressively protect algal garden within their territory, thereby shaping local fish assemblages and macro-algae diversity. Following the widespread loss of live branching coral throughout Florida and the Caribbean Sea, dusky damselfish (Stegastes adustus) have modified their territorial behavior. We compared antagonistic behavior, and size and algal species composition of territories of dusky damselfish on dead branching coral rubble and live boulder coral in the Dry Tortugas National Park, USA. Even though similar numbers of intruders entered each habitat type, dusky damselfish on rubble territories chased out significantly more fishes, had larger territories and more species of algae were present in their gardens. This study shows that dusky damselfish successfully occupy living and dead coral areas; however, there are potential trade-offs between defending a larger territory and cultivating fewer algal species.