Drilling fluid loss is a major problem with serious economic and environmental consequences. The use of traditional lost circulation materials (LCMs) to seal wide fractures increases the risk of bit nozzle plugging. In this work, smart LCMs based on shape memory polyurethane (SMPU) are proposed for the first time. SMPU can be programmed to recover at temperatures suited to a given well. As such, SMPU smoothly passes through the bit nozzles, while effectively seal wide fractures once activated. The SMPU is prepared by two step pre-polymerization and characterized by Fourier transform infrared spectra, X-ray diffraction, and differential scanning calorimeter. The SMPU is programmed by changing and fixing the original shape to a temporary shape through a thermo-mechanical process. The shape memory behavior of SMPU is analyzed by tensile apparatus. Compatibility of SMPU with WBMs is determined from mud rheology and filtration tests. Fracture sealing efficiency and shape recovery of SMPU are evaluated by a modified particle permeability apparatus fitted with a model fracture. The results confirm high sealing and shape recovery attributes of SMPU. The plug formed at 114 kg m -3 SMPU and 80 °C experiences a sealing pressure of 100 bar with 71.5 cm 3 cumulative fluid loss.