The award is named after Arjuna, one of the characters of the Sanskrit epic Mahabharata of ancient India.

Before the introduction of the Major Dhyan Chand Khel Ratna in 1991–1992, the Arjuna award was the highest sporting honour of India.

The recipients are selected by a committee constituted by the Ministry and are honoured for their "good performance in the field of sports over a period of four years" at the international level and for having shown "qualities of leadership, sportsmanship and a sense of discipline."

As of 2020[update], the award comprises "a bronze statuette of Arjuna, certificate, ceremonial dress, and a cash prize of ₹15 lakh (US$17,000).

"[a] Instituted in 1961 to honour the outstanding sportspersons of the country,[8] the award over the years has undergone a number of expansions, reviews and rationalizations.