The dead woman, who had been living in Ireland for a number of years, was found by gardaí with serious injuries in an apartment at Station Court Hall in Clonsilla at around 9.20pm on Christmas Day.
A local doctor was called but the woman was pronounced dead at the scene.
The 32-year-old woman was arrested at the complex and detained in Blanchardstown garda station. She can be questioned for up to 24 hours before being charged.
The scene was sealed off to allow garda forensic officers and the state pathologist to carry out a detailed examination. The results of a postmortem on the dead woman are expected today.
It is understood investigators are treating the death as a domestic incident and are not seeking anyone else.
Local councillor David McGuinness said it was a tragedy for the area. “It is not what people want to be dealing with over the festive season,” he said.
Meanwhile, gardaí are appealing for witnesses to an accident in Co Wicklow in the early hours of Christmas Day. A man died after being struck by a vehicle on the N11 at Coynes Cross in Ashford at around 1.30am.
The 41-year-old was pronounced dead at the scene.
Anyone who saw a black Fiat Diablo van 09 WW before the collision can contact gardaí at Bray on 01 6665300, Wicklow 0404 60140 or the Garda Confidential Line 1800 666 111.