Every language has its own phonetic characteristics, including Arabic and Indonesian. However, interactions between communities can influence the development and change of language. This influence can be observed through vocabulary that is borrowed and modified from other languages, known as loanwords. In this study, the library research method was used to search and process information. The main sources used were the Arabic-Indonesian Dictionary by Mahmud Yunus and the Al-Munawwir Dictionary by Ahmad Warson Munawwir and Muhammad Fairuz. Meanwhile, secondary data was taken from the Indonesian Language Dictionary (KBBI). Based on the study, it is concluded that the borrowing of words from Arabic to Indonesian undergoes many modifications that are adjusted to the dialect of Indonesian speakers. The borrowing process starts from the spoken language, which is then transformed into the written language. Arabic loanwords in Indonesian have both positive and negative impacts on the learning process. The positive impact is that the presence of loanwords can help facilitate the learning process of other words. This impact can be felt if the sound and usage of the word remain unchanged. Negative impacts can occur if the sound and usage of the word undergo changes and modifications, making it difficult for students to understand the original sound and usage of the word in Arabic.