Secondary carotenoids are high-valued anti-oxidants which can be produced by some algae when exposed to an environmental stress (e.g. nutrient deprivation, high light intensities). To this end, we characterized the stress-induced carotenoid production of a new microalgal strain, Dactylococcus dissociatus MT1, which was isolated from the Sahara Desert of Algeria. Nitrate starvation, oxidative stress and varying light intensities were applied to determine the effect of illumination on carotenogenesis. Canthaxanthin was the main secondary carotenoid and light intensity had an important influence on the rate of itsaccumulation. The addition of NaCl also enhanced canthaxanthin production while nitrate depletion had more of an effect on lipid production. However, these two stresses in combination synergistically increased the production of both. Our results represent a step toward the development of strains suitable for secondary carotenoid production at the industrial scale.