Chemical modifications on the DNA and nucleosomal histones tightly control the gene transcription program in eukaryotic cells. The “histone code” hypothesis proposes that the frequency, combination, and location of post-translational modifications (PTMs) on the core histones compose a complex network of epigenetic regulation. Currently, there are at least 23 different types and over 450 histone PTMs discovered, and the PTMs on lysine and arginine residues account for a crucial part of the histone code. Although significant progress has been achieved in recent years, the molecular basis for the histone code is far from being fully understood. In this study, we investigated how naturally occurring N-terminal acetylation and PTMs on histone H4 lysine-5 (H4K5) affect arginine-3 methylation catalyzed by both type I and type II PRMTs at the biochemical level. Our studies found that acylations of H4K5 resulted in decreased arginine methylation by PRMT1, PRMT3, and PRMT8. In contrast, PRMT5 exhibits increased arginine methylation upon H4K5 acetylation, propionylation, and crotonylation, but not upon H4K5 methylation, butyrylation, or 2-hydroxyisobutyrylation. Methylation of H4K5 did not affect arginine methylation by PRMT1 or PRMT5. There was a small increase in arginine methylation by PRMT8. Strikingly, a marked increase in arginine methylation was observed for PRMT3. Finally, N-terminal acetylation reduced arginine methylation by PRMT3, but had little influence on PRMT1, 5, and 8 activity. These results together highlight the underlying mechanistic differences in substrate recognition among different PRMTs and pay the way for the elucidation of the complex interplays of histone modifications.