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

The election used three district electoral areas to elect a total of 15 councillors.

Note: "Votes" are the first preference votes.

1977: 3 x SDLP, 2 x UUP, 1 x DUP 1981: 3 x SDLP, 2 x UUP, 1 x DUP 1977-1981 Change: No change 1977: 2 x UUP, 2 x SDLP, 1 x Independent 1981: 2 x UUP, 1 x SDLP, 1 x IIP, 1 x Independent 1977-1981 Change: IIP gain from SDLP 1977: 2 x UUP, 1 x SDLP, 1 x DUP 1981: 2 x UUP, 1 x SDLP, 1 x DUP 1977-1981 Change: No change