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A central question in animal behavior is how individual phenotypes shape, and are shaped by, dominance hierarchies. Using clownfish (Amphiprion percula) as a model system, we investigated how individuals strategically modify their phenotype during hierarchy formation. We tested the overarching hypothesis that interactions among size- and age-matched rivals will lead to the emergence of social roles (dominant, subordinate, solitary), accompanied by divergence in four aspects of individual phenotypes: growth, feeding behavior, agonistic behaviors (aggression, submission), and gene expression. To test this, we created 30 replicates of juvenile clownfish, each comprising a size-matched pair housed together, and a solitary size-matched individual housed separately. Our results show that an individual’s social context shapes its growth trajectory through coordinated changes in feeding behavior, agonistic behaviors, and gene expression. Individuals emerging as dominant within pairs grew twice as much compared to those emerging as subordinates, while subordinate and solitary individuals showed comparable growth. Initially, paired individuals consumed more food per capita than solitary individuals, but this difference declined as size hierarchies became established. Agonistic behaviors also decreased over time among paired individuals as size differences emerged. Transcriptomic analyses revealed upregulation of conserved vertebrate growth pathways and ossification related genes, and downregulation of satiety-associated genes, in dominant individuals compared to subordinates and solitaries. Here we link changes in gene expression with growth and feeding behavior regulation that underpin and reinforce social role differentiation during dominance hierarchy formation in clownfish. Our findings lay the foundation for a broader framework to explore the mechanisms underpinning strategic growth in social vertebrates.