A rational finite element program for the nonlinear elastic-plastic analysis of arches is used in this paper to investigate the in-plane elastic-plastic buckling and strength of circular steel arches. The finite element program considers the effects of large deformations, material nonlinearities, initial geometric imperfection, and residual stresses in predicting the elastic-plastic behaviour of steel arches. Radial loads uniformly distributed around the arch axis, concentrated loads, and distributed loads along the horizontal projection of an arch are studied, which induce either uniform compression or combined bending and compression in the arch. The complex effects of initial imperfection, rise-to-span ratio, residual stresses and the end support conditions on the in-plane elastic-plastic stability and strength of steel arches are included in the study. Useful design equations against in-plane failure are proposed for steel arches under uniform compression and under combined bending and compressive actions.