Bayern come into the game at the Allianz Arena as strong favourites after goals from Toni Kroos and Thomas Muller earned them a 2-0 advantage in the first leg in London.
Despite that significant lead, Guardiola knows the danger that Arsene Wenger's side carry, especially Germany international Mesut Ozil.
"Arsenal have lots of good players like Santi Cazorla and Mesut Ozil," he said.
"They pass and move very well. Their quality is always there to see.
"I know Arsene Wenger well and so do my players. They know what they have to do.
"Arsene works really well with young players and never changes his style. He's one of the best coaches around.
"It's a massive game tomorrow so I expect a huge performance from Ozil and the rest of their team."
Guardiola also praised Kroos and David Alaba, with the former being the subject of speculation over a move away from the club at the end of the season.
"He's a very good player and has lots of time to improve," the Spaniard added.
"He's played very well this season and I hope that continues.
"David is an unbelievable player. He has no fear, is disciplined, a team player and plays well in the biggest games.
"In Alaba, Bayern have an outstanding player for the next 10 or even 12 years."
Kroos, meanwhile, refused to be drawn on talk about his future.
"I've read a lot about myself in England but the situation is the same. My decision will be made in the summer," he said.
