1981 (MCMLXXXI) was a common year starting on Thursday in the Gregorian calendar, the 981st year of the 2nd millennium, the 81st year of the 20th century, and the 2nd year of the 1980s decade
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- January 20 – Hostages from the Iran hostage crisis are released at the same time when Ronald Reagan is inaugurated for the first time as President of the United States.
- January 21 – The first DeLorean automotive is released in Northern Ireland.
- January 27 – The Indonesian passenger ship Tamponas 2 catches fire and capsizes in the Java Sea, killing 580.
- January 29 – Adolfo Suárez resigns as Prime Minister of Spain.
- February 4 – Gro Harlem Brundtland becomes Prime Minister of Norway.
- February 8 – Polish Prime Minister Józef Pinkowski resigns and is replaced by General Wojciech Jaruzelski.
- February 14 – The Stardust Nightclub Fire in Dublin, Ireland kills 48 people in the deadliest fire in the country's history.
- February 25 – Adolfo Suárez leaves his office as Prime Minister of Spain.
- March 30 – Shortly after being inaugurated, John Hinckley, Jr. tries to assassinate President Ronald Reagan. He survives the attack.
- May 11 – Jamaican singer Bob Marley dies from cancer at the age of 36.
- July 9 - Donkey Kong, a Nintendo arcade game, was released in Japan
- July 16 - Mahathir Mohamad becomes Prime Minister of Malaysia, serving until October 31, 2003.
- July 29 – Lady Diana Spencer marries Charles, Prince of Wales.
- September – Little Miss Bossy, the first book in the Little Miss series (the female counterpart to the Mr. Men series) is first published.
- November 9 – Céline Dion's first album is released in Canada.
- January 4 – Alicia Keys, American singer
- January 28 – Elijah Wood, American actor
- January 31 – Justin Timberlake, American singer and actor
- February 11 – Kelly Rowland, American singer
- February 24 – Lleyton Hewitt, Australian tennis player
- March 3 – Justin Gabriel, South African professional wrestler
- April 28 – Jessica Alba, actress
- June 5 – Sebastien Lefebvre, Canadian Musician-Simple Plan
- June 7 – Anna Kournikova, Russian tennis player
- June 9 – Natalie Portman, Israeli actress
- July 30 – Hope Solo, American goal keeper
- August 8 – Roger Federer, Swiss tennis player
- September 4 – Beyoncé Knowles, American singer and actress
- September 8 – Jonathan Taylor Thomas, American actor
- September 26 – Serena Williams, American tennis player
- October 31 – Frank Iero MCR
- December 2 – Britney Spears, American singer and actress
- December 27 – Patrick Sharp, Canadian professional ice hockey player
May
- May 3 – Nargis, Indian actress (b. 1929)
- May 11 – Bob Marley, Jamaican reggae musician (b. 1945)
- May 18 – Arthur O'Connell, American actor, acting on stage, film and television (b. 1908)
- May 28 – Stefan Wyszyński, Polish Roman Catholic cardinal (b. 1901)
- May 29 – Soong Ching-ling, Chinese political figure and spouse of Sun Yat-sen (d. 1893)
- May 30 – Sven Andersson, Swedish footballer (b. 1907)
- May 30 – Ziaur Rahman, President of Bangladesh (b. 1936)
- May 31 – Gyula Lóránt, Hungarian footballer (b. 1923)
- May 31 – Giuseppe Pella, Prime Minister of Italy (b. 1902)
November
- November 5 – Rangjung Rigpe Dorje, 16th Karmapa (b. 1924)
- November 7 – Will Durant, American historian, philosopher and writer (b. 1885)
- November 12 – William Holden, American actor (b. 1918)
- November 25 - Jack Albertson, American actor, singer, comedian, musician, and dancer (b. 1907)
- November 29 – Natalie Wood, American actress (b. 1938)
December
- "The Tide Is High" – Blondie
- "Celebration" – Kool & The Gang (2)
- "9 To 5" – Dolly Parton (2)
- "I Love A Rainy Night" – Eddie Rabbitt (2)
- "Keep On Loving You" REO Speedwagon (1)
- "Rapture" – Blondie (2)
- "Kiss On My List" – Daryl Hall & John Oates (3)
- "Morning Train (9 To 5)" – Sheena Easton
- "Bette Davis Eyes" – Kim Carnes
- "Stars On 45 Medley" – Stars On 45 (1)
- "The One That You Love" – Air Supply (1)
- "Jessie's Girl" – Rick Springfield
- "Endless Love" – Diana Ross & Lionel Richie (9)
- "Arthur's Theme (Best That You Can Do)" – Christopher Cross (3)
- "Private Eyes" – Daryl Hall & John Oates
- "Physical" – Olivia Newton-John
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