Parasites and pathogens are hypothesized to change host growth, reproduction and/or behaviour to increase their own transmission. However, studies which clearly demonstrate that parasites or pathogens are directly responsible for changes in hosts are lacking. We previously found that infection by the systemic fungus Epichloë glyceriae was associated with greater clonal growth by its host, Glyceria striata. Whether greater clonal growth resulted directly from pathogen infection or indirectly from increased likelihood of infection for host genotypes with greater clonal growth could not be determined because only naturally infected and uninfected plants were used. In this study, we decoupled infection and host genotype to evaluate the role of pathogen infection on host development and clonal growth. We found that total biomass production did not differ for clones of the same genotype, but infected clones allocated more biomass to clonal growth. Disinfected clones had more tillers and a greater proportion of their biomass in the mother ramet. Infected clones produced fewer tillers but significantly more and longer stolons than disinfected clones. These results support the hypothesis that pathogen infection directly alters host development. Parasite alteration of clonal growth patterns might be advantageous to the persistence and spread of host plants in some ecological conditions.