Both the Rolls-Royce Kestrel and BMW VI selected to power the type proved to be inferior in terms of high altitude performance to the newer Junkers Jumo 210, however, due to limited availability of that only, only late production Ar 68s were outfitted with this powerplant.

The prototype made its maiden flight in early 1934; Chief of the Technical Office Ernst Udet personally flew the aircraft, during which the competing Heinkel He 51 proved to be outclassed.

The type was eclipsed by the Messerschmitt Bf 109, a monoplane fighter, prior to the outbreak of the Second World War; however, it continued to be operated, mainly as a trainer, as late as 1944.

[3] There were no major changes in construction between the different Ar 68 models, comprising steel tubing and a metal-plated exterior from the cockpit forwards, while the sides and underside of the fuselage were covered by fabric.

[5] Performing its maiden flight in early 1934, the Ar 68 quickly proved to possess admirable handling characteristics, being fairly maneouverable yet not prone to spinning.

[5] Chief of the Technical Office Ernst Udet personally made an early flight in the aircraft, during which he outperformed a Heinkel He 51 in a mock dogfight.

[5] Despite this favourable outcome, some officials expressed concerns about the unforgiving nature of such a high-performance aircraft, to the extent that production of Ar 68 was allegedly nearly cancelled entirely.

[citation needed] The Ar 68 competed with the somewhat similar He 51, the first prototypes of each aircraft even adopted the same BMW VI powerplant, albeit with different installation arrangements.