The effects of predators on prey populations may significantly alter many aspects of prey biology, including spatial distribution, foraging activities, and social interactions. In aquatic habitats, chemosensation is an important mode of communication and has been shown for many taxa, including crayfish, to be used in detection of predator and/or conspecific alarm cues. Here, we report on an experiment to test the hypothesis that detection of alarm cues results in greater individual investment in contests over shelters. We tested this hypothesis through dyadic contests between sex‐ and size‐matched, non‐reproductive individuals of Faxonius virilis. We found that crayfish responded to exposure to alarm cues by spending more time inside a shelter. We also report that in contests between pairs in which one crayfish had been exposed to alarm cues and the other had not, exposed individuals were significantly more likely to win ownership of a single shelter. However, we did not detect any differences in the contest parameters we recorded between exposed and unexposed crayfish. These impacts on both individual and social behavior indicate that the presence of predators is likely to have large effects on the distribution and structure of crayfish populations.