It happened around 12:45 a.m. on the 400 block of South Street in the city's Queen Village section.
Police say an argument led to the shooting of a 35-year-old man.
The victim was taken to an area hospital where he was pronounced dead.
The suspect, identified by police as 28-year-old Quadare Lane, was arrested at 5th and Lombard streets. A .40 caliber pistol, loaded with one live .40 caliber round was recovered.
Lane is facing murder charges and other related offenses.
The victim has not been identified.