Using 27 sets of new multiband photometry light curves acquired from our long-term photometric campaign carried out in the last 5yr and high-resolution spectroscopic data from seven nights, we analyzed the physical mechanisms of period variation, starspot cycle, optical flares, and chromospheric activities of the eclipsing binary DV Psc. Our updated O-C diagram covering a period of approximately 20yr shows an oscillation in its orbital period. This variations might be caused by a third body with an orbital period of 14.58+/-0.28yr. There are two active regions of starspots at longitude belts of about 90{deg} and 270{deg}. We obtained its starspot cycles with periods of 3.60+/-0.03yr and 3.42+/-0.02yr at about 90{deg} and 270{deg}, respectively. Moreover, the magnitude difference of Max.I-Max.II shows cyclic oscillation of 5.15+/-0.01yr. During our decade long photometric campaign, we observed DV Psc a total of 326.4hr, detected 18 outbursts (12 of them have never been reported) with flare energies in the range of (6.62-1106.85)x10^24^J. The slope of the relationship between the phase of the max flare and spots is 0.842 +/-0.083, implying a correlation between spots and flares. We discovered evidence for a correlation between the rotation period and the activity cycle for the short-period eclipsing binaries. Our high-resolution spectroscopic observations of DV Psc show obvious emissions above continuum in the H{alpha} line and small self-reversal emissions of the CaII IRT lines.