Protein arginine methyltransferase 7 (PRMT7) plays a crucial role in tumor occurrence and development; however, its expression pattern, biological function, and specific mechanism in gastric cancer (GC) remain poorly defined. The present study aimed to investigate the role of PRMT7 during GC carcinogenesis and its underlying mechanism. We found that PRMT7 is expressed at low levels in GC tissues, and this low expression is associated with tumor size, differentiation degree, lymph node metastasis, and TNM stage. Functionally, PRMT7 inhibits GC cell proliferation and migration. Mechanistically, PRMT7 induces PTEN expression and suppresses the downstream PI3K/AKT signaling cascade. Finally, we confirmed that PRMT7 interacts with PTEN protein and promotes PTEN arginine methylation. Taken together, our findings suggest that PRMT7 can inhibit PI3K/AKT signaling pathway activation by regulating PTEN, thereby inhibiting GC cell proliferation and migration. PRMT7 may be a promising therapeutic target for the prevention of GC.