T-Rex males used their little arms to grip female companions during sex.
Scientists believe that the stunted limbs supported strong muscles after studying the skeleton of one of the dinosaurs.
The T-Rex arms have mystified scientists for decades but the study on the fossil - which was discovered in Argentina - proves that the limbs did have a purpose.
The boffins studied the fossil of the Meraxes gigas, which grew to 36 feet and can be compared with a T-Rex as it has a similar shape.
Research leader Dr. Juan Canale said: "The skeleton shows large muscle insertions... so the arm had strong muscles. I am convinced those proportionally tiny arms had a function.
"The harder question is what exactly the functions were. Sex and balance are most likely."
He added: "They may have used the arms for reproductive behaviour such as holding the female during mating or to support themselves to stand back up after a fall."