Fourteen teams participated in the 1981–82 Cypriot First Division.
The team with the most points at the end of the season crowned champions.
The last two teams were relegated to the 1982–83 Cypriot Second Division.
Alki Larnaca and Aris Limassol were relegated from previous season and played in the 1981–82 Cypriot Second Division.
They were replaced by the first two teams of the 1980–81 Cypriot Second Division, Evagoras Paphos and APOP Paphos.