A series of waterborne polyurethane dispersions (WPUs) modified with hydroxyl-terminated polydimethylsiloxane (PDMS) were prepared by incorporating PDMS into the soft segments of polyurethane chains. The structural characteristics of the prepared samples were analyzed by Fourier transform infrared spectroscopy (FTIR), X-ray diffraction (XRD), X-ray photoelectron spectroscopy (XPS), and particle size analysis (PSA). The effect of PDMS content on the thermal and mechanical properties of PDMS-modified waterborne polyurethanes (PS-WPU) was investigated. In addition, the water resistance and dimensional stability of the PS-WPU were investigated by measuring its water absorption ratio and water contact angle along with universal testing machine measurements.