On the return of Charles to England as king, Ormond was appointed a commissioner for the treasury and the navy, made Lord Steward of the Household, a Privy Councillor, Lord Lieutenant of Somerset (an office which he resigned in 1672), High Steward of Westminster, Kingston and Bristol, chancellor of Trinity College, Dublin, Baron Butler of Llanthony and Earl of Brecknock in the peerage of England; and on 30 March 1661 he was created Duke of Ormond in the Irish peerage and made Lord High Steward of England, for Charles's coronation that year.
At the same time he recovered his enormous estates in Ireland, and large grants in recompense of the fortune he had spent in the royal service were made to him by the king, while in the following year the Irish Parliament presented him with £30,000.
His losses, however, according to Carte, exceeded his gains by nearly a million £.
See also Act of Settlement 1662.

On 4 November 1661, he once more received the lord lieutenancy of Ireland, and busily engaged in the work of settling that country.
The main problem was the land question, and the Act of Explanation was passed through the Irish parliament by Ormond, on 23 December 1665.

His heart was in his government, and he vehemently opposed the Importation Act 1667 prohibiting the importation of Irish cattle, which struck so fatal a blow at Irish trade; and retaliated by prohibiting the import into Ireland of Scottish commodities, and obtained leave to trade with foreign countries.
He encouraged Irish manufacture and learning, and it was due to his efforts that the Irish College of Physicians owes its incorporation.

He had great influence over the appointment of judges: while he naturally wished to appoint to the Bench men of legal ability, a record of loyalty to the Crown was also generally required.
It is interesting that he was prepared to appoint judges of Gaelic descent, like James Donnellan, and even some who were known to have Roman Catholic leanings.
He was criticised for favouring old friends like John Bysse who were considered too infirm to be effective, but this also shows one of his main virtues, loyalty: as Elrington Ball remarks, those whom Ormond had ever loved, he loved to the end.
Himself a merciful man, he encouraged the Irish judges to show a similar spirit of clemency; as he remarked, a man who has been reprieved can later be hanged, but a man who has been hanged can never be reprieved.
In general the judges followed his example and, by the standards of the age, were merciful enough.

Ormond's personality had always been a striking one, and he was highly regarded.
He was dignified and proud of his loyalty, even when he lost royal favour, declaring, "However ill I may stand at court I am resolved to lye well in the chronicle".
Ormond soon became the mark for attack from all that was worst in the court.
Buckingham especially did his utmost to undermine his influence.
Ormond's almost irresponsible government of Ireland during troubled times was open to criticism.

He had billeted soldiers on civilians, and had executed martial law.
He was threatened by Buckingham with impeachment.
In March 1669, Ormond was removed from the government of Ireland and from the committee for Irish affairs.
He made no complaint, insisted that his sons and others over whom he had influence should retain their posts, and continued to fulfil the duties of his other offices, while his character and services were recognised in his election as Chancellor of the University of Oxford on 4 August 1669.

In 1670, an extraordinary attempt was made to assassinate the duke by a ruffian and adventurer named Thomas Blood, already notorious for an unsuccessful plot to surprise Dublin Castle in 1663, and later for stealing the royal crown from the Tower.
Ormond was attacked by Blood and his accomplices while driving up St James's Street on the night of 6 December 1670, dragged out of his coach, and taken on horseback along Piccadilly with the intention of hanging him at Tyburn.
Ormond, however, succeeded in overcoming the horseman to whom he was bound, and escape
On the return of Charles to England as king, Ormond was appointed a commissioner for the treasury and the navy, made Lord Steward of the Household, a Privy Councillor, Lord Lieutenant of Somerset (an office which he resigned in 1672), High Steward of Westminster, Kingston and Bristol, chancellor of Trinity College, Dublin, Baron Butler of Llanthony and Earl of Brecknock in the peerage of England; and on 30 March 1661 he was created Duke of Ormond in the Irish peerage and made Lord High Steward of England, for Charles's coronation that year. At the same time he recovered his enormous estates in Ireland, and large grants in recompense of the fortune he had spent in the royal service were made to him by the king, while in the following year the Irish Parliament presented him with £30,000. His losses, however, according to Carte, exceeded his gains by nearly a million £. See also Act of Settlement 1662.
On 4 November 1661, he once more received the lord lieutenancy of Ireland, and busily engaged in the work of settling that country. The main problem was the land question, and the Act of Explanation was passed through the Irish parliament by Ormond, on 23 December 1665.
His heart was in his government, and he vehemently opposed the Importation Act 1667 prohibiting the importation of Irish cattle, which struck so fatal a blow at Irish trade; and retaliated by prohibiting the import into Ireland of Scottish commodities, and obtained leave to trade with foreign countries. He encouraged Irish manufacture and learning, and it was due to his efforts that the Irish College of Physicians owes its incorporation.
He had great influence over the appointment of judges: while he naturally wished to appoint to the Bench men of legal ability, a record of loyalty to the Crown was also generally required. It is interesting that he was prepared to appoint judges of Gaelic descent, like James Donnellan, and even some who were known to have Roman Catholic leanings. He was criticised for favouring old friends like John Bysse who were considered too infirm to be effective, but this also shows one of his main virtues, loyalty: as Elrington Ball remarks, those whom Ormond had ever loved, he loved to the end. Himself a merciful man, he encouraged the Irish judges to show a similar spirit of clemency; as he remarked, a man who has been reprieved can later be hanged, but a man who has been hanged can never be reprieved. In general the judges followed his example and, by the standards of the age, were merciful enough.
Ormond's personality had always been a striking one, and he was highly regarded. He was dignified and proud of his loyalty, even when he lost royal favour, declaring, "However ill I may stand at court I am resolved to lye well in the chronicle". Ormond soon became the mark for attack from all that was worst in the court. Buckingham especially did his utmost to undermine his influence. Ormond's almost irresponsible government of Ireland during troubled times was open to criticism.
He had billeted soldiers on civilians, and had executed martial law. He was threatened by Buckingham with impeachment. In March 1669, Ormond was removed from the government of Ireland and from the committee for Irish affairs. He made no complaint, insisted that his sons and others over whom he had influence should retain their posts, and continued to fulfil the duties of his other offices, while his character and services were recognised in his election as Chancellor of the University of Oxford on 4 August 1669.
In 1670, an extraordinary attempt was made to assassinate the duke by a ruffian and adventurer named Thomas Blood, already notorious for an unsuccessful plot to surprise Dublin Castle in 1663, and later for stealing the royal crown from the Tower. Ormond was attacked by Blood and his accomplices while driving up St James's Street on the night of 6 December 1670, dragged out of his coach, and taken on horseback along Piccadilly with the intention of hanging him at Tyburn. Ormond, however, succeeded in overcoming the horseman to whom he was bound, and escape
James Butler, 1st Duke of Ormond