Functional connectivity, the degree to which the landscape facilitates or impedes movement, depends on how animals perceive costs and benefits associated with habitat features and integrate them into a movement path. There have been few studies on functional connectivity in marine organisms, despite its importance for the effectiveness of Marine Protected Areas. In this study, we asked how open sand and conspecific distribution affected functional connectivity of longfin damselfish (Stegastes diencaeus) on fringing reefs in Barbados. We translocated 102 individuals to sites varying in sand gap width and in configuration: Continuous (solid reef between release site and territory); Detour (sand along the direct path between release site and territory, but an alternative, continuous solid U-shaped reef path); and Patch (sand between release site and territory, but an alternative stepping stone path). We visually tracked and mapped every homing path. We found no evidence of a barrier to movement in the Continuous configuration, but sand was a partial barrier in Detour and Patch configurations. The probability of crossing the sand gap dropped below 50% when its width was > 1.85 m in Detour and > 3.90 m in Patch configuration. Damselfish avoiding large gaps took detours that approximated the route maximizing travel over reef, but they crossed more short sand gaps and fewer conspecific territories, suggesting avoidance of agonistic interactions. This study quantifies for the first time the size and steepness of a barrier to movement in a marine organism, and it provides evidence for effects of both landscape configuration and conspecific distribution on functional connectivity.