Butyl benzyl phthalate (BBP) is widely used as a plasticizer to increase the plasticity and flexibility of plastic products. Although the potential health hazards of BBP have recently received extensive attention, its toxicological properties and mechanisms remain largely undefined. In the present work, growth, reproductive and developmental toxicity of BBP to Daphnia magna were evaluated, and the transcriptomic alteration of early embryos upon BBP exposure was analyzed. In a 21-day chronic toxicity test, reduced survival ratio, decreased body length, increased abnormal ratio, advanced time to first brood, and reduced offspring of D. magna were observed. BBP exposure inhibited expression of the vitellogenin gene. In addition, embryotoxicity of BBP was observed, which showed not only in the induction of abnormal neonates, but also in the shortened embryonic development cycle. RNA-Seq of early embryo treated with 0.1 mg/L BBP indicated that the pathways involved in signal transduction, cell communication, and embryonic development were significantly down-regulated, while those of biosynthesis, metabolism, cell homeostasis, redox homeostasis were remarkably up-regulated upon BBP exposure, which was consistent with the above phenotypic results. Taken together, our results highlight the toxic effects of BBP on the embryonic development and larval growth of D. magna.