Paris Saint-Germain (PSG) defeated Arsenal 4-3 on penalties on Saturday night in Budapest to retain the UEFA Champions League title after both sides played out a 1-1 draw over 120 minutes.

The victory made PSG the second club in the Champions League era, after Real Madrid, to successfully defend the European crown.

Arsenal started brightly and took the lead in the sixth minute through Kai Havertz. The German forward capitalised on a defensive mistake and raced through on goal before firing a powerful shot into the roof of the net.

The early goal gave the Premier League champions confidence as they frustrated PSG with disciplined defending.

PSG dominated possession for much of the first half but struggled to create clear chances against Arsenal’s organised backline.

Gabriel produced an important challenge to deny Khvicha Kvaratskhelia as Arsenal protected their advantage.

The French side appealed for a penalty after the ball struck Bukayo Saka’s arms in the box. However, referee Daniel Siebert waved away the appeals.

PSG increased the tempo after the break and eventually found a way back into the contest. The breakthrough came when Cristhian Mosquera fouled Kvaratskhelia inside the penalty area and Ousmane Dembele stepped up, converting the spot-kick to level the score midway through the second half.

Both teams pushed for a winner, but neither could find a decisive goal before the end of regulation time as extra time produced several opportunities, particularly for PSG, as Arsenal began to tire.

Bradley Barcola missed a promising chance, while Arsenal goalkeeper David Raya made important saves to keep his side in the match.

Arsenal also appealed for a penalty after substitute Noni Madueke went down in the box. The referee again chose not to award a spot-kick.

With the scores still level after extra time, the final was decided through penalties. Arsenal’s Eberechi Eze missed his effort, giving PSG an early advantage in the shootout.

Although Raya saved Nuno Mendes’ penalty, Arsenal failed to capitalise fully. The decisive moment came when PSG’s Lucas Beraldo converted to make it 4-3 and Arsenal defender, Gabriel sent his penalty over the crossbar, handing the trophy to the French champions.

The triumph marked another milestone for coach Luis Enrique. It was his third UEFA Champions League title as a manager and further strengthened his reputation among Europe’s elite coaches.

For Arsenal, the defeat was a painful one. It was the club’s second loss in a Champions League final, twenty years after falling to FC Barcelona in the 2006 final.

PSG, meanwhile, celebrated back-to-back European titles and another historic achievement in the history of the club.