To assess the dietary arginine requirement of Monopterus albus (21 ± 0.03 g), we compared six diets containing different arginine levels (2.03%, 2.58%, 3.16%, 3.63%, 4.24%, and 4.88%). The results revealed that dietary arginine content had a significant effect on weight gain (WG), specific growth rate (SGR), IL-1β, IL-10, lysozyme, and complement C3 activity in Monopterus albus ( p < 0.05 ). The WG and SGR increased with increasing dietary arginine levels, and the regression analysis found that the optimum dietary arginine level for growth of rice field eel was 4.28–4.35% of the dry diet. However, the C3 and LZM activities peaked in the 2.58% arginine diet group ( p < 0.05 ). The dietary arginine level had no significant effect on the viscerosomatic index, hepatosomatic index, condition factor, survival rate, nitric oxide, total nitric oxide synthase, insulin, growth hormone, trypsin, lipase, or amylase activities ( p > 0.05 ). Arginine can significantly promote Monopterus albus growth; however, the immunity of Monopterus albus decreases as the arginine level exceeds 2.58%. A comprehensive assessment of growth and immunity recommends the optimum arginine level for Monopterus albus was 3.16–3.63% of the dry diet, corresponding to 6.58–7.70% of the dietary protein.