After his return home from Indiana University and his parents' divorce, Bird married his high-school girlfriend, Janet Condra. The marriage lasted only 11 months, but produced a daughter, Corrie. In 1998, Corrie Bird appeared on The Oprah Winfrey Show and revealed that she was Bird's daughter from his first marriage though Larry had denied paternity until the mid 80's. She discussed her longing to connect with her father, who she hadn't seen in 17 years. Corrie's story was also shown on 20/20 and was run as an article in the September 4, 1998 issue of Sports Illustrated. Corrie, like her father, played basketball in high school and attended Indiana State University, graduating with a degree in elementary education. Corrie invited her father to her college and high school graduation, however, Larry did not attend either. Corrie has not seen her father since he retired from the Celtics. Corrie celebrated her 30th birthday in August 2007 with no card from her father.
Bird met his current wife, Dinah Mattingly, while attending Indiana State. They married in September of 1989 and have two children, an adopted son (Connor)and an adopted daughter (Mariah), though they have never met their half sister Corrie.