In this paper, a dual-stator permanent magnet (PM) arc motor (DS-PMAM) with improved torque density is investigated for some specific direct-drive applications. The proposed DS-PMAM can be considered as the combination of the PM arc motor and the stator-PM motor. Benefiting from two different stator structure, two sets of armature windings are employed to improve the inner space utilization ratio and torque densities. The motor structure and working principle of the DS-PMAM are firstly introduced. The simplified analytical model is derived to provide a solid theoretical guidance for optimization design parameters selection. Then, the design considerations including the slot/rotor pole combination, the armature winding design, and the key structural parameters analysis are carried out to obtain the optimal motor performances of the DS-PMAM. After that, the electromagnetic characteristics of the DS-PMAM are evaluated together with the comparison with the inner-rotor PMAM, the outer-rotor PMAM, the surface-mounted PM PMAM, and the DS flux reversal PMAM. Finally, a prototype is manufactured and fully tested. Relevant experimental results verify the correctness of the FE analysis and the feasibility of this proposed design.