4 January – Luxembourger Gaston Thorn's term as President of the European Commission comes to an end.
1 March – SES is established as Europe's first commercial satellite operator.
5 April – A fire erupts at Notre-Dame Cathedral, in Luxembourg City, destroying the belfry and damaging the roof of the nave.
24 April – Representing Luxembourg, Ireen Sheer, Margo, Franck Olivier, Chris & Malcolm Roberts, and Diane Solomon finish thirteenth in the Eurovision Song Contest 1985 with the song Children, Kinder, Enfants.
15 May – Pope John Paul II arrives in Luxembourg for a two-day visit.
1 June – Paul Philipp is appointed head coach of the Luxembourg national football team.
14 June – The Schengen Agreement is signed at Schengen, in south-eastern Luxembourg, with the intention of removing border controls between signatory states.
1 July - Luxembourg assumes the rotating Presidency of the Council of the European Union for the following six months.
17 October – Reconstruction work is completed on Notre-Dame Cathedral, after fire damaged the cathedral on 5 April.
16 June – Andy Schleck, cyclist
4 July – Cyrille Horper, cinematographer
23 July – Philippe Schwartz, musician
24 April – François Neuens, cyclist
9 July – Charlotte, Grand Duchess of Luxembourg
8 November – Nicolas Frantz, cyclist
1985 in Luxembourg Wikipedia (Text) CC BY-SA