Dundalk entered the 1981–82 season, having finished as runners-up to Athlone Town the previous season. They were the holders of both the League Cup and the FAI Cup, having achieved their first domestic cup double. In the process, they had qualified for the Cup Winners' Cup. 1981–82 was Jim McLaughlin's eighth season as manager, and was Dundalk's 56th consecutive season in the top tier of Irish football.