In order to improve the impact strength of PPS‐based strontium ferrite composite, the thermoplastic polyurethane (TPU) elastomer was added in the composite as a toughening agent. The composites were obtained by melt‐blending PPS, TPU and strontium ferrites in twin‐screw extruder. The crystalline state, thermal property, surface morphology and impact strength of the composites were investigated by using X‐ray diffraction, differential scanning calorimetry, thermoravimetric analysis, scanning electron microscope and izod impact test. The addition of TPU improves impact strength of PPS‐based strontium ferrite composite. When the addition of TPU increases to 11wt %, the impact strength of Sr‐ferrite/PPS/TPU composite is enhanced by 51.44% compared with the sample without TPU addition, and reaches to 5.77 kJ/m2. The occurrence of bonding interaction between PPS and TPU, demonstrated by a series of experiments, changes the structure and impact properties of PPS. Based on the experimental results, a possible mechanism is proposed to explain the improvement of Sr‐ferrite/PPS/TPU composites, which is different from the conventional toughening mechanism by the conformation of elastomers and the suppression of microcracks propagation. © 2016 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2016, 133, 43564.