Arsenal travelled to Turin to take on an already eliminated Juventus side, knowing even a win may not have been enough to guarantee themselves a place in the last eight.
Arsenal's first chance came in the 21st minute, but Thierry Henry shot just wide after a good pass by Freddie Ljungberg.
Arsenal kept up the pressure. But the Gunners failed to find the target after some great saves by the number two Juve keeper, Fabio Carini.
Arsenal's best chance of the first half fell to Robert Pires, but the French midfielder failed to find the target.
Five minutes into the second half, Henry was fouled in the area and Arsenal were awarded a penalty.
Henry's confidence though took a beating after Carini came up with an amazing save to deny Arsenal the lead. That's the second penalty Henry had missed in two weeks.
Juventus finally broke the deadlock in the 76th minute with a great header from Marcelo Zalayeta off a corner.
Carini was excellent as he denied Ljungberg once again in the 81st minute.
David Seamen, who had had little to do at the other end, came up with an amazing save in the last few minutes to keep Arsenal just a goal down.
But Arsenal's poor run away from home in the Champions League continued. They lost the game 1-0.
In the other group D match, Bayer Leverkusen pulled off a stunning 3-1 win over Deportivo to confirm their place in the last eight.
Micheal Ballack, Bernd Schneider and Oliver Neuville scored for the German side.
The win for Leverkusen means they are the surprising toppers of group D ahead of Deportivo la Coruna. Arsenal are in third place ahead of Juventus on goal difference.
Meanwhile, Panathinakos took on a virtual reserve Real Madrid side. The former had the early chance with a long range drive from Jan Michaelsen, but it was well saved by Iker Casillas.
Panathinaikos though took the early lead as Nikos Liberopoulos slammed home from 20 yards out after just eight minutes.
Within two minutes though, Real had equalized, as an unmarked Fernando Morientes headed home with the keeper stranded.
Panathinaikos were denied a legitimate penalty after Michaelsen was bought down in the penalty area by Iker Casillas.
Panathinaikos went ahead 2-1 in the 64th minute after Ioannis Goumas headed home from a free kick.
A shot from just outside the penalty area by Michaelsen in the 71st minute brought out another great save from Casillas, who was having quite a night.
In the 79th minute, debutant Garcia Portillo provided Real's equalizer.
The 2-2 draw meant that Panathinaikos finish second to Real Madrid in the standings and qualify for the quarter-finals of the tournament. FC Porto lost 2-0 away to Sparta Prague in the other Group C match.