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We present new dynamical parameters of the AR Pav binary system. Ourobservations consist of a series of high resolution optical/NIR spectra from which we derive the radial velocity curve of the red giant as well as its rotation velocity. Assuming co-rotation, we determine the stellar radius (130 R_solar) of the red giant. Based on this we derive the red giant's luminosity and mass (2.0 M_solar) as well as the distance of the system (4.9 kpc). The binary mass function finally yields the companion's mass (0.75 M_solar) and the binary separation (1.95 AU). We find that the red giant does not fill its Roche lobe. We review the radial velocity data of Thackeray and Hutchings (1974), and compare it with our red giant's orbit. We find that their RV curves of the blue absorption system and the permitted emission lines are in anti-phase with the red giant, and that the forbidden emission lines are shifted by a quarter of a period. The blue absorptions and the permitted emission lines are associated with the hot companion but not in a straightforward way. The blue absorption system only tracks the hot component's orbital motion whilst it is in front of the red giant, whereas at other phases line blanketing by interbinary material leads to perturbations. We finally present UV light curves based on IUE archive spectra. We clearly detect eclipses in the continuum at all wavelengths. The eclipse light curves are unusual in that they show a slow and gradual decline prior to eclipse which is followed by a sharp increase after eclipse., Comment: 9 pages, 5 figures