This is the first full model design change in seven years. The CVCC engine is now the CVCC-II, designed to improve combustion efficiency. The year 1981 also rolled out the Honda Civic Country Station Wagon, as well as a 4-door sedan trim, with front wheel, overhead drive and notchback styling.

The '81 Civic received the U.S. Import Car of the Year 1980 award from Motor Trend Magazine and took first place in the crossing mileage test in the import car section of the United States Auto Club.

Even after 25 years, the 1981 Honda Civic can pass emissions tests according to most of its drivers. In fact, of those who sold it, they say it was the biggest mistake they ever made since the car was still perfectly drivable, still perfectly reliable, and still, even though running rich, had decent gas milage.