John McEnroe was the defending champion and won in the final 6–4, 7–5, 6–2 against Roscoe Tanner.
Seeds
John McEnroe (champion) Roscoe Tanner (final) Eliot Teltscher (semifinals) Peter McNamara (quarterfinals) Vitas Gerulaitis (quarterfinals) Víctor Pecci (quarterfinals) Kim Warwick (first round) Tom Gullikson (quarterfinals)
Draw
Finals
Section 1
Section 2
External links 1981 Custom Credit Australian Indoor Championships draw