In India, Paz completed several works, including El mono gramático (The Monkey Grammarian) and Ladera este (Eastern Slope). While in India, he came into contact with a group of writers called the Hungry Generation and had a profound influence on them. In 1963 he broke up with Bona and married Marie-José Tramini, a French woman who would be his wife for the rest of his life. In October 1965, he resigned from the diplomatic corps in protest of the Mexican government's repression of students who were fighting to achieve true democracy in the country, a movement that ended abruptly when the army opened fire against demonstrators in the Plaza de las Tres Culturas in Tlatelolco. He sought refuge in Paris for a while and returned to Mexico in 1969, where he founded his magazine Plural (1970-1976) with a group of liberal Mexican and Latin American writers. From 1970 to 1974 he lectured at Harvard University, where he held the Charles Norton Chair. His book Los hijos del limo ("Children of the Fire") was the result of those courses. After the Mexican government closed Plural in 1975, Paz founded Vuelta, a publication with a focus similar to that of Plural and continued to edit that magazine until his death. He won the 1977 Jerusalem Prize for literature on the theme of individual freedom. In 1980 he was awarded an honorary doctorate from Harvard and in 1982 he won the Neustadt Prize. A collection of his poems (written between 1957 and 1987) was published in 1990. In 1990, he was awarded the Nobel Prize." In India he met the Hungryalist poets and was of immense help to them during their 35 month long trial.
Octavio Paz died of cancer in 1997.
Guillermo Sheridan, who was named by Paz as director of the Octavio Paz Foundation in 1998, published a book, Poeta con Paisaje (2004) with several biographical essays about the poet's life up to 1968.