See main article: 1981 Tel Aviv Open. Harold Solomon was the defending champion, but did not participate this year.
Mel Purcell won the tournament, beating Per Hjertquist in the final, 6–1, 6–1.
Mel Purcell (champion)
Shlomo Glickstein (quarterfinals) Vincent Van Patten (quarterfinals)
Ilie Năstase (second round)
Per Hjertquist (final) Steve Krulevitz (semifinals) Matt Doyle (first round)