Lipps' second season in 1985 saw him go over 1000 receiving yards and 50 rushing yards with 1134 and catch 12 touchdowns. He was named 1st Team All-Pro by the Newspaper Enterprise Association (NEA) and the Pro Football Writers Association (PFWA) and 2nd Team All-Pro by the Associated Press (AP). He also earned a second straight trip to the Pro Bowl. The Steelers named him the Team's MVP for the 1985 season. Lipps struggled with injuries during the 1986 and 1987 seasons but rebounded in 1988, finishing with 50 catches for 973 receiving yards and 5 touchdown catches including the Steel City Wonder, where he caught a ball in his facemask and scored. In 1989, Lipps again led the team in receptions (50), receiving yards (944) and receiving touchdowns (5) and was named Team MVP for the second time.
Lipps left the Steelers for one season to play for the New Orleans Saints in 1992 before retiring as a Steeler in 1993. Lipps caught 359 passes for 6031 yards and 39 touchdowns in his career.
He currently works for Steel City Mortgage Services in Pittsburgh, and is the co-host of a weekly Steelers-themed radio broadcast on ESPN radio 1250 AM.