The Senate struck down the measure with a 30-67 vote on Tuesday night.
The US arms sale to Saudi Arabia includes 280 medium-range air-to-air missiles used to defend against attacks such as Houthi explosive-equipped drones.
In April, the US House of Representatives overwhelmingly supported the restriction of arms sales to Saudi Arabia.
On 26 February, Secretary of State Anthony Blinken announced US sanctions on 76 Saudi Arabians who are believed to have threatened dissidents abroad and were involved in the murder of journalist Jamal Khashoggi.