Tikosyn (dofetilide) side effects. Headache is a potential side effect. I have not seen hallucinations as a reported side effect or in my patients. Contact your doctor and see if a trial off the medication is a potential option and if it resolves your symptoms. If restarting the medication the symptoms reappear then it is definitely the tikosyn (dofetilide). You will need to be monitored for arrhythmias. Do not stop tikosyn (dofetilide) on your own.