Pallikal, the 13th seed, defeated Arnold 13-11 11-9 11-9 in a tough first round clash at the South Sound squash club.
The Chennai girl, world ranked 10th, will next meet world number two, Raneem El Weleily of Egypt in the USD 188,000 WISPA event.
Weleily holds a 2-0 head-to-head record against Pallikal but the Indian has always pushed her Egyptian opponent to the limits.