Triclosan (TCS), a commonly used antibacterial preservative, has been demonstrated to have high toxicological potential and adversely affects the water bodies. Since algae are one of the most significant primary producers on the planet, understanding the toxicological processes of TCS is critical for determining its risk in aquatic ecosystems and managing the water environment. The physiological and transcriptome changes inEuglena graciliswere studied in this study after 7 days of TCS treatment. A distinct inhibition ratio for the photosynthetic pigment content inE. graciliswas observed from 2.64% to 37.42% at 0.3–1.2 mg/L, with TCS inhibiting photosynthesis and growth of the algae by up to 38.62%. Superoxide dismutase and glutathione reductase significantly changed after exposure to TCS, compared to the control, indicating that the cellular antioxidant defense responses were induced. Based on transcriptomics, the differentially expressed genes were mainly enriched in biological processes involved in metabolism pathways and microbial metabolism in diverse environments. Integrating transcriptomics and biochemical indicators found that changed reactive oxygen species and antioxidant enzyme activities stimulating algal cell damage and the inhibition of metabolic pathways controlled by the down-regulation of differentially expressed genes were the main toxic mechanisms of TCS exposure toE. gracilis. These findings establish the groundwork for future research into the molecular toxicity to microalgae induced by aquatic pollutants, as well as provide fundamental data and recommendations for TCS ecological risk assessment.