Yes it does return to normal! But, look, it is not going to be just like it was before you gave birth obviously. But it will return to it's normal state and things should function down there as they previously did. And it will not be any 'looser'. Hubby has not noticed any difference in that department. You really will be amazed how your body recovers from birth. It doesn't happen overnight but after a while you will feel normal down there again.