The primary function of the arcuate popliteal ligament is to provide stability to the knee joint, especially during activities like running, jumping, and walking. It plays a crucial role in resisting excessive lateral movement of the knee, protecting the joint from injuries that can occur during sports or physical activities. Additionally, it supports the posterior cruciate ligament and assists in maintaining the proper functioning of the popliteus muscle, which is vital for unlocking the knee from a fully extended position.