This seminar paper addresses the way Arabic loanwords are treated in Swahili. It is important to mention that when languages come into contact borrowing is likely to take place. In most cases borrowing is due to Need and Prestige. The findings show that when Arabic words are borrowed into Swahili they are nativized, that is, they are made to resemble other native words. It has been found the adjustment takes place phonologically, morphologically as well as semantically. Therefore, this study is very interesting since it involves two languages from very distant geographical locations.