After a period of decline, James Stephens bounced back in 1981. A double scores 2–10 to 0–8 defeat of Fenians gave Larkin a fourth championship medal. He later collected a second Leinster medal as championship debutantes Faythe Harriers were narrowly defeated by 0–13 to 1–9. First time finalists Mount Sion of Waterford provided the opposition in the subsequent All-Ireland decider. A hat-trick of goals by John McCormack, together with a ten-point haul from Billy Walton, saw James Stephens fight back from seven points down to record a 3–13 to 3–8 victory. It was a second All-Ireland medal for Larkin.