Victory over Marton Fucsovics on Wednesday was Djokovic's first win on clay since completing the career 'Golden Slam' at the Paris Olympics last summer.
He is now within two wins of achieving his 100th ATP Tour-level singles title - a feat only achieved by Jimmy Connors and Roger Federer in the Open era.
"Last year I played semi-finals. Hopefully this year I can go at least a step further - that's the goal," said Djokovic, who was presented with a birthday cake following his on-court interview.
"I think I am playing really good tennis. Today there was a lot of tension on the court."
Avenging his loss to Arnaldi was another timely victory before his latest bid to win an outright record 25th Grand Slam title, with the French Open beginning on Sunday.
Punching the air and letting out an almighty roar in celebration, it was clear how much another victory before the year's second slam meant to Djokovic after an inconsistent start to the year.
Immediate exits in Madrid and Monte Carlo following defeat in March's Miami Open final had left Djokovic, in his own words, facing up to a "new reality" as he pushes to create more history in the twilight of his career.
He made a solid start against 39th-ranked Arnaldi, cruising through the first set after going an early break up, but the second set was more wayward.
Djokovic smashed his racquet after going 4-1 down and briefly appeared to feel some discomfort on the knee which required surgery last June.
However, he reset admirably after unleashing his frustration on his racquet.
He swiftly ripped the set from Arnaldi's grasp, reeling off five games in a row to win in one hour and 40 minutes, before receiving his cake and being sung to by the crowd.
"After the racquet breaking I kind of found my optimal state and balance mentally and emotionally to be able to play my best tennis when it was most needed," Djokovic added.
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