CNTs are the element that exists with predominant physio-chemical properties, which have been extensive researched today. These properties make carbon nanotubes (CNTs) valuable in a wide potential range of applications. The production of high-quality carbon nano-tubes (CNTs) via different precursors has been reported for many years. The arc discharge is a pristine technique to form CNTs with a high-quality yield. This technique has been elucidated for a long time, but the growth condition and mechanism of affected synthesized parameters and coorelation between synthesized parameters and nucleation of carbon have not been explored. In this chapter, the authors present the factors affecting temperature, geometry, grain size, electrodes, pressure, catalyst, arc current, power supply, and growth mechanism of CNTs. The variation in parameters has been elicited along with challenges and gaps.