Humanoid robots are designed and built to mimic human form and movement. Ultimately, they are meant to resemble the size and physical abilities of a human in order to function in human-oriented environments and to work autonomously but to pose no physical threat to humans. Here, a humanoid robot that resembles a human in appearance and movement is built using powerful actuators paired with gear trains, joint mechanisms, and motor drivers that are all encased in a package no larger than that of the human physique. In this paper, we propose the construction of a humanoid-applicable anthropomorphic 7-DoF arm complete with an 8-DoF hand. The novel mechanical design of this humanoid arm makes it sufficiently compact to be compatible with currently available narrating-model humanoids, and to be sufficiently powerful and flexible to be functional; the number of degrees of freedom endowed in this robotic arm is sufficient for executing a wide range of tasks, including dexterous hand movements. The developed humanoid arm and hand are capable of sensing and interpreting incoming external force using the motor in each joint current without conventional torque sensors. The humanoid arm adopts an algorithm to avoid obstacles and the dexterous hand is capable of grasping objects. The developed robotic arm is suitable for use in an interactive humanoid robot.