Lyons was in his 37th year when he was named on the Cork's championship fifteen once again in 1960. After facing each other on the league final, both Cork and Tipperary renewed their rivalry in the subsequent Munster final. Described as the toughest game of hurling ever played, Cork enjoyed most of the possession in the first half, however, Tipperary led by a goal at the interval thanks to the accuracy of Jimmy Doyle. They stretched their lead to five points in the final quarter, however, a last-minute Cork goal left the result in doubt once again. Tipperary eventually won a gruelling contest by 4-13 to 4-11. Lyons retired from inter-county hurling following this defeat.