The 1981 BC Lions finished in third place in the West Division with a 10–6 record.
Joe Paopao had an excellent season with 3777 yards passing and 28 passing touchdowns and running back Larry Key had 19 touchdowns in a bounceback season after missing most of the 1980 season due to injury. Wideout Ty Gray had a breakout season with 1428 yards receiving.
The Lions beat Winnipeg in the West Semi-Final, but fell to the Eskimos 22–16 in the Western Final when Warren Moon hit Brian Kelly for a late 4th quarter touchdown. The Western Final included a game changing officiating error involving a Devon Ford kickoff return for a Lions touchdown when the officials incorrectly stated he stepped out-of-bounds. Television replays showed he clearly did not step out-of-bounds (video replay was instituted 25 years later in 2006).
Running back Larry Key and centre Al Wilson made the CFL all-star team.
This season marked the first time in Lions history that every regular season (16 in all) and playoff game (2) was televised.
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