Due to the two-month players' strike, the 1981 season was split into two halves, with division leaders of each half facing each other in a temporary best-of-five Division Series format. The winners advanced to the League Championship Series.

The Brewers were making their first postseason appearance, and it seemed like it would be a quick one at that against the most accomplished club in postseason history. The Yankees took the first two in Milwaukee and were three innings away from a sweep in Game 3 at home, when the Brewers suddenly made a series of it. Ted Simmons' two-run homer in the seventh and RBI double in the eighth led the Brewers to a 5-3 comeback victory in Game 3, and a 2-1 victory behind starter Pete Vuckovich and closer Rollie Fingers the next game evened it.

Milwaukee took a 2-0 lead in Game 5, but Reggie Jackson and Oscar Gamble slugged back-to-back homers in the fourth, and the Yankees were off to the ALCS.

Path to the ALDS: New York (34-22) won the AL East first half and Milwaukee (31-22) won the AL East second half 

Managers: Bob Lemon, NYY; Buck Rodgers, MIL