When the hunger strike ended in late 1981, Walsh became the Officer Commanding (OC) of the IRA prisoners in the H-Blocks. He was released after seven years and seven months. Upon his release, he married Sinéad Moore, a former republican prisoner. They and had two daughters, the youngest of whom was only two weeks old when he was arrested again, caught making explosives and mortar bombs He was sentenced to twenty-two years in prison. While on remand in Crumlin Road Gaol, Walsh again became OC of the IRA prisoners.