To address the high energy consumption issue caused by throttling losses during hydraulic excavator arm retraction, this paper proposes an energy-saving control method for arm retraction based on intelligent load direction recognition. First, by utilizing displacement sensor data from the boom, arm, and bucket cylinders, a kinematic model of the arm and bucket system is established to calculate the composite center of gravity in real time and predict the theoretical transition interval where the load force on the arm cylinder shifts from pulling to pushing. Then, the actual load force is dynamically calculated based on pressure data from both chambers of the cylinder, enabling accurate identification of the transition point from pulling to pushing within the theoretical interval. Finally, the return hydraulic circuit of the arm is redesigned along with a corresponding energy-saving control strategy to reduce energy loss during the return process. Experimental results demonstrate that, while ensuring smooth operation during arm retraction, the energy consumption during the pushing phase is reduced by 40.8%, and the total energy consumption of the complete retraction cycle is decreased by 17%. This study provides an engineering-feasible technical approach for energy-saving optimization in hydraulic excavator arm retraction operations.