Cadmium (Cd) is a pervasive environmental pollutant that poses significant health risks to aquatic organisms, yet the functional role of metallothionein (MT) in mediating Cd tolerance in crustaceans beyond its use as a biomarker remains incompletely understood. In this study, we characterized a metallothionein gene (LvMT) from the Pacific white shrimp Litopenaeus vannamei and investigated its protective function against Cd-induced injury through integrated cellular, pathological, and transcriptomic approaches. LvMT protein exhibits typical structural features of crustacean MTs, with transcripts broadly distributed across tissues and highest abundance in the intestine, ventral nerve cord, brain, and hepatopancreas. In vitro, LvMT overexpression in HEK293T cells significantly enhanced cell viability under Cd, Zn, and H₂O₂ stress. In vivo, injection of recombinant LvMT-mCherry fusion protein improved shrimp survival under acute Cd challenge, attenuated Cd-induced histopathological damage in the hepatopancreas and gills, and partially restored antioxidant capacity. Transcriptomic analysis revealed that Cd exposure triggered early transcriptional responses involving xenobiotic metabolism, redox regulation, and metabolic disruption, whereas LvMT-associated transcriptional remodeling emerged at the later stage, characterized by the recovery of genes involved in protein synthesis, endoplasmic reticulum function, RNA turnover, energy production, and cellular maintenance. Temporal clustering further demonstrated that LvMT supplementation reversed the Cd-induced suppression of a large gene set associated with core cellular processes, facilitating the restoration of protein synthesis, energy production, and overall metabolic homeostasis. This study provides the first direct in vivo functional evidence that LvMT actively contributes to Cd tolerance in L. vannamei, highlighting its role as a protective regulator rather than merely a stress indicator, and offers mechanistic insights into MT-mediated cytoprotection in crustaceans.