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His son Eric last played professional hockey for Norway’s Stavanger Oilers, and previously played for the Nashville Predators, Calgary Flames, Minnesota Wild, and Dallas Stars of the NHL.

In 2003, he was inducted into the Nassau County Sports Hall of Fame. He is also a member of the National Jewish Sports Hall of Fame. He received the George Young Award, given to that individual, Jewish or non-Jewish, who has best exemplified the high ideals that George Young displayed, from the U.S. National Jewish Sports Hall of Fame and Museum in 2003.

Nystrom has a son, Eric, who was drafted by the Calgary Flames as the number ten pick in the first round of the 2002 NHL Draft. He most recently played for the Nashville Predators.

The Islanders retired his No. 23 on April 1, 1995, although three other players had worn it after Nystrom.

In 1991, the Islanders began presenting the Bob Nystrom Award to the player on the team "who best exemplifies leadership, hustle, and dedication." Past winners:

Nystrom remained an assistant coach the next two seasons, then served as radio analyst for the Islanders. He was named Islanders Director of Corporate Affairs in 1988 and remained in that position through 1988–89 season, when he took a position as Islanders Director of Special Projects in 1989 and remained in that position through 1990–91 season. He was named Islanders Director of Community Relations in 1991 and Director of Amateur Hockey Development & Alumni Relations in 1992. In 1997 he added the title Director of Corporate Relations remained in that position through 2001–02 season.

Nystrom continued to be an effective winger through the Islanders' Stanley Cup run, but by 1985, his rugged, aggressive play began to wear his body down. He played only 36 games in 1984–85, managing only two goals, though he matched that total in only ten postseason games.

After playing sparingly through the first three months of the 1985–86 season, Nystrom was accidentally struck in the eye by a high stick from teammate Gerald Diduck in practice on January 5. Unable to play due to the severity of the injury (he suffered two tears of the retina, which nearly cost him his eye and later required surgery), he was thought to have retired, and he served as an assistant coach for the remainder of the season.

Nystrom had played in 899 regular season games at the time. Islanders' coach, Al Arbour, who considered Nystrom one of his favorites, approached Nystrom prior to the Islanders' last home game of the 1985–86 season on April 5, and asked him if he would like to dress one more game, in order to make it an even 900 games played; more importantly, it would give Islander fans a chance to say a proper good-bye. Nystrom accepted, and was added to the starting lineup. He took the opening face-off to a surprised and appreciative home crowd's roar. After skating around for about five seconds, he returned to the bench, never to play again.

As with many of the Islanders of the early 1980s, those instincts seemed to be more in tune when the playoffs rolled around. Nystrom has been known as one of the all-time clutch players in NHL Stanley Cup playoff history. He tallied 39 goals and 83 points in 157 playoff games; however he is most noted for his knack for sudden death overtime winners. Nystrom ended playoff overtime games four times in his career.

On May 24, 1980, in Game 6 of the Stanley Cup finals against the Philadelphia Flyers, Nystrom scored the game winner at 7:11 of overtime on an assist from John Tonelli to secure the first Stanley Cup in franchise history. Nystrom was part of the first NHL team (1979–80 New York Islanders) to win a Stanley Cup with Europeans on its roster. In 1981, he received an invitation to play for Sweden in the 1981 Canada Cup but was forced to decline as he had not yet negotiated a new contract with the Islanders and hence did not want to risk injury.

Over the next four seasons, as the Islander team improved, Nystrom became one of the steadiest two-way forwards in the league. In each of his first five seasons he collected over 20 goals, including a career-high 30 in 1977–78, while playing a strong checking and defensive game as well. He was also selected to play in the 1977 NHL All-Star Game.

Nystrom's first full season with the Islanders was 1973–74, when he tallied 41 points as a rookie, garnering Calder Memorial Trophy consideration as rookie of the year (the award eventually went to teammate Denis Potvin). As Potvin now used number 5, Nystrom would wear number 23.

Born Thore Robert Nyström in Stockholm, Sweden, Nystrom came to Canada as a four-year-old and starred for the BCJHL's Kamloops Rockets in 1969–70. He was an emotional sparkplug on the Calgary Centennials of the WCJHL for two seasons, and was claimed 33rd overall by the Islanders in 1972. He played half a season for minor league affiliate New Haven Nighthawks of the American Hockey League before being promoted to the Islanders in March 1973, wearing number 5.

Robert Thore Nystrom (born October 10, 1952) is a Canadian former professional ice hockey right winger. He played for the New York Islanders of the National Hockey League (NHL) from 1972–86. He is best remembered as having scored the winning goal at the 7:11 mark of overtime to give the New York Islanders the 1980 Stanley Cup title. This signaled the first of four straight championships for the club. He was also among the last NHL players to not wear a helmet during a game.