It was the biggest test of their title credentials to date as Gabriel's goal gave them a win at Chelsea and a return to the top of the table.
The Brazilian centre-back touched in the corner of the net to give Mikel Arteta's side a priceless three points.
The significance of the win was summed up by Arteta who had previously been coy about his side being in the title race.
Arteta said that they are in contention today. Tomorrow is hard.
Look at what Manchester City have done. They've shown it in every competition they've entered.
This is a long, long show and we have to be very respectful of that.
Gabriel Jesus had chances to score in the first half and the second.
It wasn't a good day for Pierre-Emerick, who started for the Blues against his former club, but didn't threaten the rest of the attackers.
With just one game left before the World Cup break, the Gunners have re-established their two-point lead at the top of the table.
Chelsea: Mendy 6; Azpilicueta 6, Silva 6, Chalobah 5, Cucurella 4; Loftus-Cheek 5, Jorginho 6, Mount 6; Havertz 5, Aubameyang 4, Sterling 6
Subs: Broja 6, Gallagher 6, Kovacic (n/a), Pulisic (n/a)
Arsenal: Ramsdale 6; White 8, Saliba 8, Gabriel 8, Zinchenko 8; Partey 9, Xhaka 8, Odegaard 7; Saka 8, Jesus 7, Martinelli 7
Subs: Tierney (6), Elneny (n/a), Holding (n/a)
Player of the match: Thomas Partey (Arsenal)
Gabriel nodded on Thomas Partey's long throw into the side-netting, but it was not enough to give the home side the lead.
Within the first 10 minutes, Ben White's shot almost found Jesus at the back post, but he couldn't get the touch to divert it.
The hosts would come all the way.
The best opening in the first 45 minutes was a heated one in which Jesus was booked for a lunge on White in front of Arteta.
Granit Xhaka and Gabriel Martinelli were freed by a brilliant one touch move on the edge of their own box. Jesus was alone at the back post and only had to head wide to find food.
The second half was the same as the first, with Jesus chances going begging. The Brazilian was in the middle of the field when Mendy saved his shot.
They eventually made their chances count. Gabriel tapped home on the line as the corner headed all the way in. The centre-back got to the ball before the England winger did.
The Blues were going to change their play before the goal, but they were rattled by the fact that the Gunners dominated from there. Martin Odegaard missed a better chance after being played in by Jesus when he hit over the bar.
The home side applied some pressure as the clock ticks on and the rain fell in west London, but last-ditch challenges from White and William Saliba in the box keptChelsea's blunt attack at bay
After the final whistle, Arteta took his team to the away end to celebrate a huge victory, while the crowd booed.
Sky Sports journalist at a football game.
The two teams were considered to be direct rivals by the public. The winning goal was scored by Jesus.
It was seen as a statement victory by City as they went on to win the league.
It was another Brazilian, Gabriel, who came to the rescue for the winning goal, despite the fact that Jesus should have scored.
The win by the defender means that the Gunners are top of the table for another week, but they are now 13 points ahead of the Blues, who were looking to challenge for a top-four spot.
The 13 point difference between the two teams in the league table was justified by the performance.
The way Arteta celebrated the win shows how the perception of his team has changed since they sat as London's top dogs.
The home of a 'Big Six' rival is something that has not been common for a long time. Discipline, creativity and calmness were present. They played the same way as Manchester City did.
There shouldn't be any doubts now. They need an injury crisis to stop them from mounting a title challenge and going toe-to-toe with Man City.
Sky sports journalist Joe Shread is at a football game.
The build-up to the game between the two teams was dominated by the fact that Arteta wanted to remove him from the first team.
The forward started on the left side of the front three and was given permission to try to link up with Havertz. He was not on the same wavelength as the German in the first half, and he waited for a cross that never came.
The frustration continued in the second half and he was taken off in the 63rd minute, ending the game with a measly total of two touches in the area.
The blame for the lack of effort in front of the goal can't be pinned on one person. The Blues' expected- goals total of 0.26 was dwarfed by the Gunners' figure of 2.11 and showed how little threat they posed to their rivals.
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Graham Potter started his reign with five wins and a draw from his first six matches, but that record is no longer valid. They have taken just two points from their last four top-flight matches after recording a non-penalty expected goals tally of just 1.06 per 90 minutes from the head coach's first six premier league games.
Potter's penchant for tinkering with personnel and formations is well established but it means that, 12 matches into his time in west London, it is still hard to decide how he wants his side to play.
The head coach has spoken about his desire for the team to be "flexible" on the pitch and the loss of two key players.
The performance at the home of their rivals came as a result of every player understanding their role in the team. The value of playing under the same head coach for nearly three years was shown by the team that are still getting to grips with the demands of a new manager.
The Blues are not in a "fantastic moment" according to Graham Potter.
"We huffed and puffed, but I thought you could see the difference between the two teams in terms of confidence, points, structure and their work together," Potter said.
It's not nice to say that we're not in a good place, but I think that the team that deserved to win the game was the one we were playing.
We have to use that as motivation to get better.
Potter said that Mikel Arteta has been given time and resources to build his side since he took charge of the team.
Potter thinks it's not one thing. They've got the points, they've got off to a good start, they've been working together for three years or so. We are at the beginning of our process and they have an understanding of each other.
There are a few injuries to key players that they have been able to stay clear of.
Ben White has done everything he can to show that he is worth a trip to the Middle East with England.
The defensive astuteness and concentration required to keep a clean sheet was demonstrated by the defender who was largely untroubled. The Three Lions boss cannot hold off the calls for White any longer after the last-ditch clearance he made to deny a dangerous break late in the game.
Arteta said he would be happy for White if he went to the Persian Gulf state.
It is possible that the effects of last weekend's injury are still being felt by the player on the same flank. The ball wouldn't drop for him in the first half and when it did after the break he flashed an effort over.
Graham Potter and Mikel Arteta rubbished the idea that the 21-year-old is that kind of player after he was accused of diving by the Blues.
The energy supply couldn't support the man who was the Blues' greatest spark but it was difficult for him.
In the first half, direct balls to Sterling were the most exciting form of attack, but there was little individual inspiration from the Three Lions forward.
Given that he recovered from questionable form at Manchester City to become England's main man at Euro 2020, there shouldn't be a lot of concern over his performance.
That is likely due to an overall creative fault in Graham Potter's side.
When he came on after the hour mark, the lack of attacking inspiration continued as did the good work done by Trevoh Chalobah, who some believe is an outsider for the England squad.
Sky Sports will show the Carabao Cup third-round match between Manchester City and Chelsea. The Sky Sports main event kicks off at 8PM. On Saturday, November 12th, the Blues will be on Sky sports. The game will start at 5pm.
The third round of the Carabao Cup will take place on Wednesday. The Wolves game is on Sky Sports and will take place on November 12. The kick-off time is 7.45 pm.