(1984 - 1994) (divorced) (2 children)
two children: Jamie and Louis.
In 1987 Lillywhite worked with The Pogues, producing "Fairytale of New York". It was due to him that his then wife, Kirsty MacColl, provided the lead female vocal for their biggest hit. The single narrowly missed being the UK Christmas number one single, but was still one of the biggest selling records that year. The song "Cotton Fields," from the Pogues' 1989 album Peace and Love, (also produced by Lillywhite) includes a reference to "Steve Lillywhite's drunken mix."
In 1991 he returned to Dublin to produce Engine Alley's debut album entitled A Sonic Holiday, and his wife Kirsty MacColl would again provide backing vocals - this time on the single "Song for Someone".