The 1981 Penn State Nittany Lions football team represented Pennsylvania State University as an independent during the 1981 NCAA Division I-A football season. Led by 16th-year head coach Joe Paterno, the Nittany Lions compiled a record of 10–2. Penn State was invited to the Fiesta Bowl, where the Nittany Lions defeated USC. The team was selected national champion by Dunkel, an NCAA-designated major selector, while Clemson, who finished the season 12–0, was the consensus national champion.