Mrs Thatcher paid a visit to Moscow in 1987, meeting Soviet leader Mikhail Gorbachev at the Kremlin.
Terry Waite, the special envoy of the Archbishop of Canterbury in Lebanon, was taken hostage in Beirut. He was not freed until 1991.
The Church of England's General Synod voted to allow the ordination of women.
It was also a year of heartache, with 193 people dying when The Herald of Free Enterprise ferry capsized in Zeebrugge, Belgium.
Michael Ryan killed 14 people in Hungerford and injured 16; the death toll was to later rise to 16 when two more victims died in hospital from their injuries.
Eleven people were killed by a Provisional IRA bomb at the Remembrance Day service in Enniskillen.
On a lighter note, IKEA opened its first British store at Warrington in Cheshire, Hilda Ogden played by Jean Alexander made her final appearance in Coronation Street after 23 years, and Neighbours star Kylie Minogue released her debut single in the UK I Should Be So Lucky.
More retro: Through the 1980s – our galleries of pictures from 1980, 1981, 1982, 1983, 1984, 1985 and 1986
1. Herol 'Bomber' Graham signs autographs for young fans at the Junior Star Fun Day in Weston Park in 1987 September 2, 1987
Herol 'Bomber' Graham signs autographs at the Junior Star Fun Day in 1987 Photo: Sheffield Newspapers
2. Lord Mayor's Parade
American football costumes with cheer leaders make up the SKF Dormer Tools float for the Lord Mayor's Parade on May 30 1987 Photo: Mike Waistell
3. Sword Dancers
Handsworth Traditional Sword Dancers on February 26 1987 Photo: Andrew Partridge
4. Eat, Don't Hula
Sheffield pop group Eat, Don't Hula outside the Atlantis Fish Bar on December 2 1987 Photo: Sheffield Newspapers Ltd