Newcastle's performance improved in the second half, and striker Alan Shearer almost equalised when his shot hit the inside of David Seaman's post.
It was Arsène Wenger's first FA Cup triumph as a coach; he went on to win six more finals in a 22-year spell at the club to become the competition's most successful manager.
As with league fixtures, FA Cup matches are subject to change in the event of games being selected for television coverage and this often can be influenced by clashes with other competitions.
Neither side managed to find a winning goal after normal and extra time, meaning the tie headed into a penalty shoot-out.
[5] Arsenal fielded a makeshift side at Selhurst Park, but goals from Nicolas Anelka and Dennis Bergkamp ensured progress into the next round.
"[12] A 1–0 win in the fifth round at home to Tranmere Rovers was followed by a quarter-final draw against Barnsley, who had knocked out competition favourites Manchester United.
[18] Newcastle were victorious on both occasions: the first match in 1932 ended 2–1 in their favour, while the second, staged twenty years later, was a much tighter affair and George Robledo's goal settled the game.
In Dalglish's first full season at Newcastle, his team struggled for consistency and spent much of the Premier League campaign hovering in mid-table.
The striker had limped out of their game against Derby County in late April, and after it emerged he pulled his hamstring Bergkamp was ruled out for the remainder of Arsenal's league campaign.
[25] Wenger revealed two days before the final that Bergkamp had resumed training and "medically he looked all right", but the player received a further setback when he suffered a reaction to his hamstring.
The England international was involved in a tangle with Leicester City player Neil Lennon during a league match, which went unnoticed by the referee.
[31] Shearer's teammate Rob Lee felt the striker was in the right shape of mind to face Arsenal, saying: "He's too strong a person to have let that affect him, even if it hadn't been sorted.
Dalglish named Alessandro Pistone in the starting eleven to play as right back; commentator John Motson suggested the defender's role was to nullify Overmars.
Both clubs were set up in a traditional 4–4–2 system: a four-man defence (comprising two centre-backs and left and right full-backs), four midfielders (two in the centre, and one on each wing) and two centre-forwards.
Newcastle kicked-off the final on a warm Saturday afternoon and quickly set about testing Arsenal by aiming long balls in their half.
He shifted it onto his left foot, but his shot from about 20 yards (18 m) bobbled past Arsenal goalkeeper David Seaman's left-hand post.
A through-ball by Emmanuel Petit had found the charging winger and he resisted the challenge of Pistone to prod the ball through the legs of the onrushing goalkeeper Shay Given.
[45] Newcastle struggled to breach Arsenal's stable defence for the remainder of the first half; Ketsbaia saw his curling shot on target but comfortably caught by Seaman.
[46] Newcastle appealed for a penalty deep into added time after Adams jumped over Shearer while looking to clear the ball, but the referee immediately turned it down.
Newcastle responded by bringing on Andersson, an extra forward, in place of Pearce but the change in personnel made no difference to the outcome.
[49] Match rules Arsenal's win had sealed a league and cup double and Wenger, the club's manager, described it as "the greatest moment of my sporting life.
Ian Ridley wrote in The Independent on Sunday of 17 May 1998: "Where Arsenal played legato, Newcastle were staccato in their passing and though they enjoyed a purple patch after raising the tempo in the second half, twice hitting the goal frame, they were largely limp opposition.
"[55] The Guardian football correspondent David Lacey was in awe of the double winners' performance, writing "There have been more distinguished Wembley triumphs but it is hard to remember a final being won with the sheet pace of Arsenal's victory over Newcastle on Saturday.
"[56] Paul Wilson of The Observer believed in comparison to their title charge it was "lukewarm stuff",[57] while The Sunday Times match reporter Joe Lovejoy felt the London club had got the better of Newcastle in what was a "pretty ordinary game".
"[58] David Pleat wrote in his analysis column for The Sunday Times that key to Arsenal's victory was winning the midfield battle.
[61] A day after the win Arsenal paraded both trophies on an open-top bus, heading towards Islington Town Hall for a civic reception.
[66] By 2015, Wenger had led Arsenal to a record-breaking 13th FA Cup and victory against Chelsea in 2017 earnt him the accolade of being the most successful manager in the competition's history.
[70] Rob Hughes in his Times column of 18 May 1998 credited the Arsenal manager for demonstrating "what there is to learn from overseas", and for blending players of different ages and cultural backgrounds into a successful squad.
[54] The 1998 double-winning team is regarded as one of English football's finest; former Manchester United winger Ryan Giggs later described them as one of his toughest opponents: "They just had a bit of everything really.