The present invention is a stabilized aqueous pharmaceutical composition comprising etanercept and a stabilizer to inhibit instability misfolding aggregation and/or fragmentation of the etanercept wherein the stabilizer comprises xylitol or a combination of xylitol and meglumine. Various technical terms used in the following discussion are defined below in the section entitled "Definitions" and throughout the remainder of the specification. The stabilized etanercept formulations of the present Invention which are optionally and preferably free of arginine elicit long term storage stability.