In a face-off, People Liberation Army (PLA) troops intruded more than 20 km inside the Indian territory in Changlagam area of Arunachal's Anjaw district in August and stayed for over two days.
The issue evoked widespread reaction in the state with Chief Minister Nabam Tuki condemning it in the floor of the Assembly. The apex students' union - All Arunachal Pradesh Students' Union (AAPSU) also staged several protest rallies.
Arunachal Pradesh also raised the stapled visa issue with the Centre through Union Minister of State for Minority Affairs Ninong Ering during the year.
There was lot of anguish over the issue and it was raised by Prime Minister Manmohan Singh during his talks with Chinese Premier Li Keqiang in Beijing. But there was not much forward movement on the issue.
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China also reacted to President Pranab Mukherjee's maiden visit to the state on November, saying it "hoped India would refrain from actions that complicate the boundary question".
The contentious refugee issue also hogged the limelight in the state during the year. The refugees, mostly belonging to Chakma and Hajong tribes from neighbouring Bangladesh, have been living in the state since 1990s.
The AAPSU along with the state government constituted a joint high power committee which carried out a joint survey in the refugee concentrated areas in Tirap, Changlang and Papum Pare during August.
Opposing tooth and nail the state government's decision to grant PRCs to non-Arunachalees, the AAPSU launched a vigorous movement on the issue during the year.