Two goals by 17-year-old Italian striker Arturo Lupoli and another from exciting Dutch teenager Quincy Owusu-Abeyie brushed aside Everton's challenge and clinched a Carling Cup quarter-final place for Arsenal's impressive youngsters.
Arsene Wenger's young Gunners kept their composure despite conceding an early goal, then cut Everton open with flowing football worthy of their seniors.
Arsenal view the competition as fourth in importance, but they reached the semi-finals last season with a scratch team, before losing to Middlesbrough in both legs of the semi-finals.
Wenger uses the League Cup to blood youngsters and hand experience to squad players such as Mathieu Flamini, Jermaine Pennant and Robin van Persie. It was no coincidence that none of the Gunners' 16 were involved in the 1-1 Premiership draw at Crystal Palace on Saturday.
The only senior player to start was the Brazil midfielder Edu, returning after a spell out with a calf injury.
Arsenal's line-up was in stark contrast to Everton's experienced side. Manager David Moyes only tinkered with the team that lost at Chelsea on Saturday.
Ex-Gunners goalkeeper Richard Wright passed a fitness test on a back injury to face his old club. The young Gunners showed their character and exuberance after a slow start. Everton tested them physically early on, then grabbed an eighth-minute lead when Thomas Gravesen's free-kick took a slight deflection off Pennant to beat keeper Manuel Almunia.
The setback seemed to inspire Arsenal, who responded at high tempo.
Van Persie, Lupoli and substitute Owusu-Abeyie all threatened the Everton defence before Owusu-Abeyie levelled in the 25th minute. The 18-year-old Holland youth striker controlled Pennant's pass, cut inside two tackles and smacked a low shot past Wright.
Edu and Flamini drove their side forward. Van Persie, pulling off the Everton defence, threaded through neat passes. Owusu-Abeyie curled another shot too high. Philippe Senderos headed over from a corner and Van Persie fired inches wide as Arsenal kept up the pressure.
But Everton almost caught them out just before the break. Almunia palmed out James McFadden's shot, then Alessandro Pistone shot against an upright and 17-year-old defender Johan Djourou cleared as the ball ran along the goal line. It was the stroke of luck they needed.
Pennant, drifting in from the right and the quicksilver Owusu-Abeyie tormented Everton in the second half.
The Gunners took the lead after 52 minutes. Owusu-Abeyie sped past three defenders and found Van Persie, who unselfishly rolled the ball across for ex-Parma forward Lupoli to stroke past Wright.
Owuse-Abeyie shot over again from Pennant's pass and Wright made a saving block from Lupoli's close-range effort.
Nineteen-year-old Swedish defender Sebastian Larsson replaced Edu. Everton threw on Leon Osman for Steve Watson to strengthen their attack. McFadden, twisting and turning, posed their biggest danger.
But Arsenal just kept coming. Pennant shot wide and Van Persie forced Wright to make a flying save at a free-kick.
Lupoli finished the contest seven minutes from time with a decisive sidefooter to cap a flowing move involving Justin Hoyte, Van Persie, Flamini, Owusu-Abeyie and Pennant.