The expansion of nanofiller‐based polymers has been rapidly increasing in contemporary society due to their wide range of applications owing to their diverse physicochemical characteristics. This review focuses on a polymer nanocomposite in which graphene is incorporated as a nanofiller and polyurethane is used as a polymer. As polyurethane is well known for its shape memory behaviour and the reinforcement of graphene‐based nanomaterial sparks the physicochemical properties of the fabricated nanocomposites which makes it more adaptable and useful for a wide array of applications. The review provides insights into the recent synthesis approaches to the fabrication of graphene‐based polyurethane nanocomposites. Further, efforts were also made to cover the recent studies done on the use of these nanocomposites as an advanced shape memory material. Rather than merely serving as descriptive content, this article is intended to serve as a comprehensive guide for researchers seeking to harness the potential of graphene‐based nanomaterial reinforcement in polyurethane for high‐performance applications. By providing a detailed overview of the latest research in this domain, the review aims to propel the development of novel and sophisticated materials, unlocking new horizons in smart shape memory technologies.