The diode-laser absorption technique was applied for simultaneous velocity and temperature measurements of an argon plume exhausted by an arcjet. The Ar I absorption line at 811.531 nm was taken as the center absorption line. The velocity and the temperature were derived from the Doppler shift in the absorption profiles and the full width at half-maximum of the plume absorption profile, respectively. From the measured plume velocity and temperature, the total enthalpy of the exhausted plume, the thrust efficiency, and the thermal efficiency of the arcjet were derived, and the performance of the arcjet was examined. The results are demonstrated to agree with results derived by other methods, and the technique can be applied to the measurement of other arcjet systems without much modification.