Movies, Rolling Thunder & Religion
- Honorary Doctorate of Music by Princeton University
- Returns to New York and buys town house on MacDougal
- First book "Tarantula" finally published (originally written in the mid-1960s)
- Buys house near Malibu, starts building up "Xanadu"
- Supporting act as "Alias" in Sam Peckinpah’s "Pat Garrett and Billy the Kid" and contribution of soundtrack
- Mike Hobo is born, creator of the Legendary Bob Dylan website – named after the song “I Am a Lonesome Hobo” from 1968
- First US-Nr.1-Hit "Knocking on heaven’s door", taken from the original motion picture soundtrack of "Pat Garrett and Billy the Kid" by Sam Peckinpah
- First Billboard #1 album "Planet Waves"
- First tour in 8 years, joined by The Band (“Before the Flood” live album)
- Rock history’s probably most anarchistic tour ever: the "Rolling Thunder Revue", featuring musicians as Ramblin’ Jack Elliot, Joan Baez, Roger McGuinn, Mick Ronson, Bob Neuwirth, T-Bone Burnett and the complete "Desire"-sessions-crew as well as artists like beat poet Allen Ginsberg, writer Sam Shepard and actress Ronnee Blakely.
- "Blood On The Tracks" tops the US Billboard album charts.
- Performance at The Band’s farewell concert, "The Last Waltz" concert movie directed by Martin Scorsese
- "Desire" becomes Dylan’s third consecutive studio album to reach the Billboard #1.
- Divorced from Sara
- Movie "Renaldo & Clara" about "The Rolling Thunder Revue" of 1975, directed by and starring Bob Dylan
- Converted from jewish belief to christianity and releases the Gospel albums "Slow Train Coming" and "Saved"