The function of algae extract (AE) in fishmeal (FM) substitution with plant proteins in the diets of Gibel carp (Carrassius auratus gibeilo) was investigated during a 56-day trial. Diets 1 and 2 contained 10% FM, Diets 3 and 4 contained 5% FM, and Diet 5 and 6 contained 0% FM. In contrast, Diets 2, 4, and 6 were supplemented with 0.2% AE. The results showed that FM reduction inhibited growth performance, while AE supplementation alleviated growth inhibition. FM reduction significantly decreased the crude protein levels of the whole body, while the contents of whole-body lipids were significantly decreased with AE supplementation. There were no significant changes in ALB, ALP, ALT, AST, TP, GLU, GLU, and TC in plasma. FM reduction with AE supplementation mitigated the decrease in antioxidant capacity by heightening the activity of antioxidant enzymes and related gene expressions, which mitigated the decrease in immune capacity by affecting the expression of inflammatory factors. In summary, AE supplementation could alleviate the negative effects of FM reduction in Gibel carp.