Steven Dishman, 60, went on the run on 28 May 1985 while serving seven years for burglary and theft of property.
He was sentenced in December 1984, and would have been eligible for parole in December 1987.
Dishman was taken into custody by law enforcement officials and the Arkansas State Police.
The inmate escaped from the Cummins Unit in Lincoln County, where convicted murderer Ledell Lee was executed in April.
Solomon Graves, Public Information Officer for the Arkansas Department of Corrections (ADC), said Dishman will have to serve what is left of his sentence.
Further charges may follow in connection with his escape.
According to the ADC website, four prisoners are still at large in Arkansas. Of those, the longest standing escapee is Veal Lee, a thief who went on the run on 15 July 1984.
An Arkansas prisoner who escaped more than 30 years ago has been recaptured in the city of Springdale, a prisons spokesman said.