The 'Terminator' star agrees that repeatedly warning kids about the dangers of smoking was necessary because big-screen scenes could tempt youngsters to light up.
He, however, insists that asking someone to play certain roles, like Winston Churchill, without cigars would be quite ridiculous.
He strongly believes that filmmakers need artistic freedom, particularly in historical settings.
"I personally don't believe that we should erase cigarettes in movies. I don't believe that we should erase it when someone smokes a cigar in a movie. I think that we should remind people and kids all the time about the dangers of smoking," the Daily Express quoted the California Governor as saying.
"To suddenly tell actors not to smoke a cigarette in a movie when they portray a character is ludicrous. I think this is going too far," he added.
The Austrian-born, who himself loves cigar, says that he often warns his four children not to follow his example.
"Even though you see me every so often light up a cigar, I let them know not to ever try it," he said.
Schwarzenegger's comments came at a news conference where major studios announced they would include anti-smoking announcements on millions of youth-rated DVDs of motion pictures that included smoking scenes.
The public service announcements will appear on films rated G, PG and PG-13.