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

The election used six district electoral areas to elect a total of 30 councillors.

Note: "Votes" are the first preference votes.

1977: 2 x UUP, 2 x SDLP, 1 x DUP 1981: 2 x UUP, 2 x SDLP, 1 x DUP 1977-1981 Change: No change 1977: 2 x SDLP, 1 x Alliance, 1 x Independent Nationalist 1981: 4 x SDLP 1977-1981 Change: SDLP (two seats) gain from Alliance and Independent Nationalist 1977: 2 x SDLP, 2 x UUP 1981: 2 x SDLP, 1 x UUP, 1 x DUP 1977-1981 Change: DUP gain from UUP 1977: 3 x SDLP, 2 x UUP, 1 x Alliance, 1 x Independent Nationalist 1981: 3 x SDLP, 2 x UUP, 2 x IIP 1977-1981 Change: IIP gain from Alliance, Independent Nationalist joins IIP 1977: 4 x SDLP, 1 x Independent Nationalist, 1 x Independent Republican 1981: 3 x SDLP, 2 x Anti H-Block, 1 x IIP 1977-1981 Change: Anti H-Block (two seats) gain from SDLP and Independent Republican, Independent Nationalist joins IIP 1977: 2 x SDLP, 1 x UUP, 1 x Alliance 1981: 2 x SDLP, 1 x UUP, 1 x IIP 1977-1981 Change: IIP gain from Alliance