Humza Yousaf, Minister for External Affairs and International Development, was allegedly verbally abused in Glasgow city centre earlier this month.
The incident happened when the politician, an SNP MSP for Glasgow, was selling the Big Issue outside Queen Street station to raise awareness of homelessness as part of International Street Paper Vendor Week.
Police Scotland said a 30-year-old man has been arrested in connection with an alleged racial breach of the peace following an incident in Dundas Street on Friday, February 7.
He is being held in custody and is expected to appear at Glasgow Sheriff Court today.
A report will be sent to the procurator fiscal.