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The 1981 Icelandic Cup was the 22nd edition of the National Football Cup.
It took place between 26 May 1980 and 30 August 1981, with the final played at Laugardalsvöllur in Reykjavík. The cup was important, as winners qualified for the UEFA Cup Winners' Cup (if a club won both the league and the cup, the defeated finalists would take their place in the Cup Winners' Cup).
The 10 clubs from the 1. Deild entered in the last 16, with clubs from lower tiers entering in the three preliminary rounds. Teams played one-legged matches. In case of a draw, the match was replayed at the opposition's ground.
The final was a rematch of the previous season - Fram and ÍBV meeting, but on this occasion it was the club from Vestmannaeyjar who qualified for Europe. IBV won the Icelandic Cup for the fourth time.
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