Elections to Dungannon District Council were held on 20 May 1981 on the same day as the other Northern Irish local government elections.

The election used four district electoral areas to elect a total of 20 councillors.

Note: "Votes" are the first preference votes.

1977: 2 x UUP, 2 x SDLP, 1 x DUP 1981: 2 x UUP, 1 x SDLP, 1 x DUP, 1 x Independent Republican 1977-1981 Change: Independent Republican gain from SDLP 1977: 2 x SDLP, 1 x UUP, 1 x Independent Nationalist, 1 x Independent Republican 1981: 2 x Independent Nationalist, 1 x SDLP, 1 x UUP, 1 x Independent Republican 1977-1981 Change: Independent Nationalist leaves SDLP 1977: 3 x UUP, 1 x SDLP, 1 x DUP 1981: 4 x UUP, 1 x SDLP 1977-1981 Change: DUP gain from UUP 1977: 2 x Independent, 1 x UUP, 1 x SDLP, 1 x DUP 1981: 2 x UUP, 1 x DUP, 1 x IIP, 1 x Independent Nationalist 1977-1981 Change: UUP and IIP gain from Independent (two seats), Independent Nationalist leaves SDLP