The objective of this study was to determine the effects of gall induction on leaf phenolic compounds and their indirect effects on the subsequent attack of folivorous insects in Achatocarpus gracilis, Cordia alliodora, Guapira macrocarpa, Guettarda elliptica and Ruprechtia fusca that occur in both hillside and riparian sites at Chamela-Cuixmala tropical dry forest in western Mexico. There are differences in soil water content between riparian and hillside sites where trees in the first are mainly evergreen and deciduous in the second. A few tree species occur in both sites and their intraspecific phenological response is also different between sites. In this case, trees of a given species that occur in riparian sites will be evergreen whereas trees on hillsides of the same species will be deciduous. Four plant species had significantly greater total phenol concentrations in galled than ungalled leaves in both deciduous hillside and riparian sites. In three plant species associated with galls, host total phenol concentrations were significantly greater in short than in tall plants. The frequency and amount of folivore damage were greater in leaves without galls than leaves with galls in these four plant species. These results indicate that galling insect species may directly affect leaf phenolic concentrations and indirectly may affect the incidence and consumption of folivorous insects in tropical plant species. This may have important consequences on the preference of leaves by folivorous insects that might be excluded by galling insect species in this dry tropical system.