Mansfield had taken the lead despite a poor first half performance when Jason Lee put the visitors ahead with a neat header from an inswinging Michael Blackwood corner on 41 minutes.
But unlucky Stags failed to hold onto their lead and a deflected own goal from defender Alan O'Hare just before the break dragged the Cumbrians level.
Stags were then left to rue a succession of missed chances from Arnold, Blackwood and one great opportunity for Mark Stallard in the second half.
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And the misery was further heaped on Mansfield with 120 seconds to go when striker Jason Walker headed home the winner from a Mark Boyd corner after he beat a Paddy Gamble to the ball - sending Town to their first defeat of the season.
Stags will now be looking put the setback behind them with a convincing victory at home to Northwich Victoria on Monday.
High-flying Stags went into the tricky away game unchanged following their recent back-to-back wins at home against Histon and Kiddersminster.
Experienced Mark Stallard and Jason Lee once again lined up to continue their increasingly prolific partnership in front of goal.
Newly-promoted Barrow, who suffered their first defeat since 26th January at the hands of league leaders Cambridge last Saturday, headed into the clash full of confidence.
The Bluebirds lost Mike Pearson to a one-game suspension after he was sent off last week, but welcomed back defender Ashley Winn for his first start of the season following a three-match suspension.
They also gave a first start to new loan signing Paul Black, who joined Barrow on a month's loan from Oldham on Friday.
The game began in slow fashion as both sides battled to gain control of the midfield.
Stags survived an early scare in the fifth min when Ashley Winn and Boyd got in each other's way on the edge of the Mansfield box and failed to get a shot away.
Mansfield also survived a penalty scare as Winn played in the full-back, who then had his neat cut-back charged down by Matt Somner on 16 minutes.
The partisan home crowd roared for a penalty, but their appeals were waved away by the referee.
Barrow, who was promoted to the league through the play-off system last season, began to get on top of the tie as wayward passing in Mansfield's midfield all too often allowed the Bluebirds to dominate possession.
Against the run of play Stags registered their first shot on goal, when Mark Stallard weakly fired a lunging shot straight into the arms of Deasy after being played in by Matt Somner on 20 minutes.
Confident Barrow continued to pile on the pressure as they pushed lackluster Mansfield further and further back into their half.
Winger Carlos Logan should have done better on 26 minutes when he fired a free-kick from 25 yards high over Gamble's crossbar.
Lively Winn also went close when he burst from midfield and fired a neat chip just a yard over the Mansfield bar to the relief of Gamble on the half-hour mark.
Stags' finally weathered the Barrow storm and began to come into the game as an attacking force.
Jason Lee mustered a shot as he pivoted to fire comfortably wide of goalkeeper Deasy's right hand post.
Stallard then fired a shot high over the bar on 34 minutes when he perhaps should have done better after a neat flowing move through the Stags' midfield, involving Silk, Somner and Jason Lee.
And Mansfield's growing pressure finally told when they took the lead on 41 minutes to stun the home crowd.
Jason Lee neatly found the bottom corner of Deasy's goal after he edged clear of his marker to latch on to a sweet inswinging Blackwood free-kick
But the lead lasted only three minutes as Barrow luckily equalized following a defleted Lee Hunt shot just before half-time.
Hunt latched on to a flicked on corner and powered his shot towards goal, which hit O'Hare to agonisingly trickle into the unguarded net as helpless Gamble dived the other way.
The game then burst into life and Mansfield nearly regained the lead on 44 minutes as Blackwood linked up well with Stallard to burst into the Bluebirds box.
But he failed to find the back of the net as his powerful drilled shot was well-saved by a diving Tim Deasy.
Barrow started the second half brightly and nearly took the lead straight away when Henney burst down the right flank and evaded tackles by Arnold and Silk.
He then cut into the Stags' box to pick out Mark Boyd, who had his goal-bound piledriver blocked for a corner by the diving defenders.
Moments later Stags responded with a Jeannin free kick, which comfortably flew over the bar from 23 yards, and a fumbled Stallard shot when he had beaten the defender and had the goal at his mercy.
Stallard then fluffed another fine chance on 54 minutes when he was picked out with a pinpoint centre from full-back Alex Jeannin.
But with the goal once again at his mercy he unbelievably fired a weak header straight back into the arms of grateful Deasy from six yards out.
Dominant Stags continued to push for their second goal as Arnold, Blackwood and Stallard became more influential and began to cause all sorts of misery for the Barrow rearguard.
Barrow should have gone ahead on 64 minutes when Hunt failed to connect with a header after he was picked out in space by a dangerous whipped in free-kick from Logan.
Somner then blazed over the bar on 74 minutes from 22 yards out after pacey Arnold cut inside from the left wing and played a neat cross-field pass into the path of the onrushing Mansfield midfielder.
Barrow came back into the game and fired a warning shot when Jason Walker hammered his shot high over Paddy Gamble's goal after he was picked out by substitute Paul Brown on 82 minutes.
The home side began to turn up the heat in the closing stages and put some pressure on Stags with a series of late corners.
And with just two minutes to go striker Jason Walker made up for his earlier miss to head home a Mark Boyd corner after he beat Gamble to the ball.
Stags attempted to get a deserved equaliser, but failed to threaten the Barrow goal in injury time and were forced to leave the Lake District with a defeat.
BARROW: Deasy, Bond, Black, Jones, McNulty, Henney, Winn, Boyd, Walker, Hunt (Rogan 77mins), Logan (Brown 69mins). Subs not used: Taylor, Bayliss, Sheridan.
MANSFIELD TOWN: Gamble, Silk, O'Hare, Moses, Jeannin, Arnold, Somner, D'Laryea, Blackwood (Hurran 77mins), Lee (Robinson 89 mins), Stallard (O'Connor 81mins). Subs not used: Herriott, Shaw.
REFEREE: Mr R. West.
ATTENDANCE: 2,063.
GOALS: Barrow - O'Hare og 44mins, Walker 88mins. Mansfield - Lee 41mins.
MAN OF THE MATCH: Blackwood
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