Plasmas are common tools used for synthesis and modification of nanoparticles. All techniques aim at providing high quality, nanostructured materials with well-defined crystalline state and functional properties. The most consolidated cold plasma nanosynthesis methods are pulsed-DC physical/chemical vapour deposition (PVD/CVD), high power impulse magnetron sputtering (HiPIMS), and pulsed cathodic arc. However, atmospheric arc discharge processes excel in production of stand-alone nanomaterials thanks to their high throughput and excellent quality and wide variety of obtained materials. Carbon nanostructures, like graphene and carbon nanotubes, core-shell nanoparticles, and transition metal dichalcogenide monolayers constitute some remarkable examples. Pulsed atmospheric arc nanosynthesis shows unique capabilities due to its flexibility and wide range of plasma parameters achievable by adjusting repetition frequency, pulse length, and peak values of pulse waveform. Here, we review the highlights of pulsed arc discharges applied on synthesis of low-dimensional materials, and the main contributions of this technique and other concurrent plasma methods are compared. The advantages of operating atmospheric pressure arc discharges in pulsed mode have enabled addressing instability issues via a more efficient arc control. Such milestones are discussed according to the intended research goal or application, namely: high-temperature tailoring of material nanostructure, control of deposition with a spatial resolution, nanosynthesis using liquids in plasma, and enhanced stabilization and power management of anodic arcs.