A number of city institutions, including R W Forsyth department store on Princes Street, the Ritz Cinema on Rodney Street and jewellers Abbott of Greyfriars, were to disappear for good.
But it wasn’t all doom and gloom.
A fancy new cocktail bar, Charlie Parker’s, opened up on George Street, the Edinburgh Fringe was more popular than ever and the entire city went Royal Wedding daft to celebrate the marriage of Princes Charles and Diana Spencer.
In sport, there was success for Scotland at Murrayfield against Australia, while ex-Man Utd and Hibs star George Best brought his glamorous new team, the San Jose Earthquakes, to Easter Road.
We’ve had a deep dig through the archives at the Evening News to bring you 17 memories of Edinburgh in 1981.
1. A bit blawy
Passers-by rush to stop a baby's pushchair being blown away at Edinburgh's Waverley Steps during the gales of November 1981. Photo: Ian Brand
2. George Best in Edinburgh 1981
Footballer George Best in Edinburgh in September 1981. Hibs played Best's new side, the San Jose Earthquakes, in a friendly at Easter Road on 5 October. Photo: Bill Newton
3. Arnotts
Exterior of Arnotts department store on North Bridge Edinburgh, August 1981. Photo: TSPL
4. Cambridge Gardens street party 1981
Cambridge Gardens residents have a street party to celebrate the Royal Wedding in Edinburgh, July 1981. Photo: Alan Macdonald