Emotion induction and its impact on perception is a well-researched field. However, the impact of arousal levels on different kinds of perception is a relatively uncharted field. The present research examined the effects of video-induced arousal levels on the perception of emotions in musical clips. Study 1 tested the effects of high and low arousals on the perception of happy or sad music clips. Results revealed that participants’ ratings of happy music clips were higher in low arousal condition, possibly due to a more reflective engagement, enhancing the perception of positive emotions. Additionally, there was an increase in sadness ratings in the second sad clip for the high arousal condition, probably due to the participants being attuned to the emotional nuances in the clips, heightening the perception of sadness. Study 2 tested the effects of high and low arousals on the perception of tense and calm music clips. Results revealed that participants’ ratings of calm music as peaceful were higher in the high arousal condition, possibly due to a ‘contrast effect’ reducing feelings of anxiety or elevated arousal. We also observed a decrease in the ratings for the second tense music clip in both high and low arousal conditions, which could have been due to an effect of adaptation to the emotions experienced in the musical clips. These findings suggest that arousal plays a significant role in influencing the perception of musical emotions.