Novel poly(dimethylsiloxane)-based polyurethane nanocomposites (TPU-NCs) were synthesized using in situ polymerization with the nanoclay, Cloisite 30B. DSC, TGA and DMTA analyses showed that TPU-NCs with organoclay content ≤5 wt % exhibited increased thermal stability, storage modulus and hard segment melt temperatures, but decreased degrees of crystallinity. TPU-NCs displayed increased surface hydrophilicity and enhanced surface free energy with increasing organoclay content. SWAXS confirmed intercalated formations of organoclays in the nanocomposites. Individual clay particles on surfaces of TPUs with lower organoclay loadings (1 or 3wt %), or organoclay agglomerates in TPUs with higher amounts of organoclay (≥ 5 wt %) were detectable using SEM. The relatively smooth and homogeneous character of pure TPU and the distinctly heterogeneous and rough surfaces of TPU-NCs were detected via AFM. Among the nanomaterials prepared, TPU-NC with 1 wt % of organoclay provided the best balance between organoclay concentration and the functional properties desired in biomedical applications.