<P><B>Abstract</B></P> <P> <I>Schizochytrium</I> is a microalgae-like fungus and is widely used for producing docosahexaenoic acid (DHA). It is also a promising source of squalene and carotenoids. However, few fermentation strategies are available in enhancing squalene and carotenoid content in <I>Schizochytrium</I>. This study showed that butanol addition had multiple effects on <I>Schizochytrium limacinum</I> B4D1. First, butanol addition altered the lipid content of cells. Second, 6g/L of butanol decreased the proportion of DHA by nearly 40%. Third, the squalene content increased 31-fold in the presence of 6g/L butanol. Finally, cells accumulated more carotenoids upon butanol addition. Specifically, when cells were treated with 8g/L butanol, the astaxanthin content increased to 245 times than that of the untreated control. These results are helpful for the commercial exploitation of <I>Schizochytrium</I> in producing squalene and carotenoids.</P> <P><B>Highlights</B></P> <P> <UL> <LI> Butanol treatment altered the lipid content. </LI> <LI> Cells accumulated more C16:0 and less DHA in the presence of butanol. </LI> <LI> Butanol treatment triggered squalene and sterol accumulation. </LI> <LI> The carotenoid content was increased upon butanol treatment. </LI> <LI> The antagonism between the formation of DHA and terpenoids was observed. </LI> </UL> </P>