With few exceptions, the sexes are separate in arthropods; i.e., there are both male and female individuals. The paired sex organs, or gonads, of each sex are connected directly to ducts that open onto the ventral surface of the trunk, the precise location depending upon the arthropod group.

In arthropods, sperm are commonly transferred to the female within sealed packets known as spermatophores. In this method of transfer the sperm are not diluted by the surrounding medium, in the case of aquatic forms, nor do they suffer from rapid desiccation on land. Among some arachnids, such as scorpions, pseudoscorpions, and some mites, the stalked spermatophore is deposited on the ground. Either the female is attracted to the spermatophore chemically or the deposition of the spermatophore occurs during the course of a nuptial dance, and the male afterward maneuvers the female into a position in which she can take up the spermatophore within her genital opening. Centipedes also utilize spermatophores with an accompanying courtship behaviour. Among insects there are some primitive wingless groups, such as collembolans and thysanurans, in which the spermatophore is deposited on the ground, but in most insects the spermatophores are placed directly into the female genital opening by the male during copulation. Many other invertebrates, including several gastropods and chaetognaths, also use spermatophores. Many arthropods transfer free sperm rather than spermatophores. These include many crustaceans, millipedes, some insects (such as dipterans and hemipterans), spiders, and some mites.

Arthropod eggs are usually rich in yolk, but in all groups there are species whose eggs have little yolk. Some specialized methods of reproduction found among certain arthropods include the development of unfertilized eggs (parthenogenesis), the birth of living young (viviparity), and the formation of several embryos from a single fertilized egg (polyembryony).

The eggs of many crustaceans hatch into larvae which have fewer segments than the adult. The earliest larval hatching stage is a minute nauplius larva, which possesses only the first three pairs of appendages. Additional segments and appendages then appear at regular intervals with molting. There are several advantages of larval stages in the development of aquatic animals: Currents disperse the larvae, enabling some to settle in different locations from the parents; because many larvae are capable of feeding, less yolk is required in the egg; and, moreover, planktonic larvae do not compete with benthic adults.

In most chelicerates and insects, almost all of the segments are present at hatching, although in insects the body form may differ from that of the adult. Primitive insects, such as collembolans, have the adult form on hatching. Many insects, such as grasshoppers, crickets, and true bugs, hatch as nymphs, which superficially resemble the adult but lack wings. They gradually acquire these adult features during the nymphal instars. Other insects, such as beetles, butterflies, moths, flies, and wasps, hatch as larvae (grubs, caterpillars, maggots) that differ markedly from the adult. The larvae inhabit different environments and eat different foods than the adults. In these insects a pupal stage with metamorphosis bridges the gap between the larva and the adult form.

Myriapods have the general body form of the adult on hatching though they may lack some of the segments. Most millipedes hatch with only seven trunk segments. Some centipedes hatch with all of the adult trunk segments, but others have fewer than the adult.

The young of most arachnids are similar to the adult. The female scorpion gives birth to her young, which immediately climb onto her back. Female wolf spiders also carry their young, and prior to hatching they carry the white egg case attached to the posterior spinnerets. Unlike other arachnids, mites and ticks hatch as six-legged larvae, which acquire the fourth pair of legs at a later molt.