A late salvo from Lewis Dunk and Neal Maupay gave Brighton & Hove Albion what could turn out to be a crucial win in their quest for Premier League survival, as Mikel Arteta's side suffered another damaging blow to their European hopes.
Dunk had brought Brighton level, cancelling out Nicolas Pepe's stunning opener.
The Brighton defender bundled Solly March's cross over the line in the 75th-minute, after Pepe broke the deadlock with a splendid curling effort only seven minutes earlier.
But five minutes into injury-time a fine move from Brighton saw substitute Aaron Connolly set Maupay away and he finished well for a dramatic late winner.
Arsenal had created the better chances in the game, with the impressive Bukayo Saka hitting the crossbar in a first-half overshadowed by a potentially serious injury to Bernd Leno.
The Arsenal goalkeeper landed awkwardly on his leg when he challenged Maupay on the edge of his area. There was a lengthy stoppage as he was treated on the pitch for what looks like a serious knee injury and as he was being stretchered off, he gestured angrily at Maupay, who pleaded his innocence.
Maupay was challenged by irate Arsenal players in ugly scenes at the final-whistle, on what is another damaging day for Arteta's men.
The result leaves Arsenal in ninth, eight points adrift of fourth-placed Chelsea who have a game in hand. Brighton remain 15th, but crucially move five points clear of the drop zone.
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