We used Achnatherum sibiricum, a native grass as test material and application of methyl jasmonate (MJ) to simulate herbivory, and compared the growth and physiological characters of endophyte-infected (EI) and endophyte-free (EF) plants. The results showed that MJ treatment significantly decreased the shoot growth, but significantly increased the concentrations of defensive substances such as total phenolic and lignin, and decreased the size of aphid population. Endophyte infection significantly increased the tiller number, total phenolic and lignin contents in the shoot. As for shoot biomass and total phenolic in the root, they were affected by MJ treatment. Without MJ treatment, no significant differences were found in shoot biomass or root phenolic content whether the plants were infected by endophyte or not. With MJ treatment, the shoot biomass was significantly lower and the shoot phenolic content was significantly higher in EI plants than in EF plants. Endophyte infection significantly increased resistance of the host plant to aphids, and the beneficial effect was enhanced by MJ treatments, after three applications with MJ, there were no aphids on EI plants. Overall, endophyte infection could alter the allocation pattern of the host plant between growth and defense, and MJ treatments further strengthened the defensive ability of the host plant at the cost of growth.