The Gunners have been drawn with the German outfit for the third time in the last four seasons, while Manchester City will have to navigate past Bayern Munich and Roma
Manchester City were handed a tough group for a second season running and will have to navigate past Bayern Munich and Roma to reach the knockout stage.
Chelsea will be happiest with their Group G draw, and will face Schalke, Sporting and Maribor.
Arsenal overcame Besiktas in a nervy play-off clash thanks to Alexis Sanchez's first goal for the club to reach the Champions League proper for the 17th consecutive season, and will now face Dortmund, Galatasaray and Anderlecht in Group D.
Liverpool mark their return to the competition for the first time since 2009 with clashes against Real Madrid, Basel and Ludogorets in Group B. The Anfield outfit have never tasted defeat to the Spanish giants in three meetings.
City reached the knockout stages of the competition for the first time in their history last season, only to be eliminated by Barcelona in the round of 16.
They have been handed a tough draw with Pep Guardiola's Bundesliga champions Bayern, CSKA Moscow and Roma in Group E.