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When Absalon retired from military service in 1184 at the age of fifty-seven, he resigned the command of fleets and armies to younger men, like Duke Valdemar, the later king Valdemar II.
He instead confined himself to the administration of the Danish empire.
In 1192, Absalon made his nephew Peder Sunesen his successor as Bishop of Roskilde, while his other nephew Anders Sunesen was named the chancellor of Canute VI.
Absalon died at Sorø Abbey on March 21, 1201, 73 years old, with his last will granting his personal holdings to the Abbey, apart from Fjenneslev which went to Esbern Snarre.
He had already given Copenhagen to the Bishopric of Roskilde.
Absalon was interred at Sorø Abbey, and was succeeded as Archbishop of Lund by Anders Sunesen.

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