Gather seed cones that drop from arborvitae trees in the fall. Shake the seeds from the seed cones or extract them with tweezers, if necessary.
Line a plastic bag with damp paper towels and place the seeds in the bag. Seal the plastic bag and store it in a refrigerator for at least two months. Arborvitae seeds require this cold stratification period to germinate.
Fill a seed tray with potting soil. Remove the arborvitae seeds from the plastic bag and plant them in the tray at a depth of about 1/2 inch. Keep the seed tray indoors in a sunny window. Water the seed tray with 1 inch of water per week so the soil remains moist but not wet.
Select an outside permanent planting site with fertile soil and good drainage. Remove the arborvitae seedlings from the seed tray after the last expected frost when they reach a height of at least 6 inches. Place the seedlings in the planting site at the same level as they were in the seed tray.
Water the arborvitae seedlings with 1 to 2 inches of water per week during the first growing season. Apply a 2-to-3-inch layer of mulch around the tree during the following spring. Keep the mulch several inches away from the trunk.