The 1980–81 season was the 79th season in which Dundee competed at a Scottish national level, playing in the First Division after being relegated the previous season. Dundee would finish in 2nd place, achieving immediate promotion back to the top tier. Dundee would also compete in both the Scottish League Cup and the Scottish Cup, where they would be eliminated by Falkirk in the 3rd round of the Scottish Cup, and made an impressive run to the final of the League Cup, before being defeated by inter-city rivals Dundee United.