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Fast growth and large size generally increase survivorship in organisms with indeterminate growth. These traits frequently covary, but where they do not, trade-offs often exist in the behavioral choices of organisms. Juvenile bicolor damselfishStegastes partitusthat settle on coral reefs at larger sizes generally experience enhanced survivorship but have slower juvenile growth rates. We hypothesized that differences in behavior may mediate this trade-off. To test whether it is trait-related behaviors or the traits themselves that enhance early survival, we combined individual behavioral observations with otolith (ear stone)-based daily growth measurements for juvenileS. partitusin the Florida Keys. Foraging, sheltering, and chasing behaviors of 256 fish were measured during 5 different months (2008–2009), and patterns of differential survival were similar to those from a 6-year (2003–2008) recruitment time series. We found a trade-off between sheltering and foraging that significantly explained patterns in size-at-settlement: damselfish that settled at larger sizes spent less time sheltered and more time feeding high in the water column. Juvenile growth rates were unrelated to any of the sheltering–foraging behaviors but instead were inversely related to adult conspecific density. Damselfish that settled near higher densities of conspecifics were subjected to increased territorial chasing. Chasing intensity interacted with settlement size such that large juveniles who were chased more frequently exhibited slower growth rates, whereas smaller settlers did not experience this energetic cost. Thus, the dominant survival strategy ofS. partitusis to settle at a large size and spend more time foraging high in the water column while dodging conspecifics at an energetic cost to their growth rates. Size-at-settlement is determined during the larval period and after settlement, this trait is key to subsequent behaviors and the strength of trait-mediated survival. Understanding how somatic growth, body size, and survival are intertwined in early life is necessary to help explain population dynamics.