It was first identified in North America in 1985, but it is not known if it was introduced artificially (e.g., an invasive species) or missed in previous surveys.

This distinguishes it from a red tide, which is an algal bloom whose toxins lead to harmful effects in people.

The organism is capable of heterotrophic growth in the dark in the presence of glycerol and grazes on bacteria, especially when phosphate is limited.

P. parvum can use a wide range of nitrogen sources, including ammonium, nitrate, amino acids (which ones apparently depends on pH), creatine, but is unable to use urea.

New evidence has shown that the toxins produced by this alga are induced by physiological stresses, such as nitrogen and phosphorus depletion due to competition with the environment.