The unsaturated polyurethane (PU) was synthesized, characterized, and used in rubber compound. To study the effect of PU incorporation in the blend a systematic approach was used where PU was added to the natural rubber (NR), butadiene rubber (BR), and NR/BR blends. Different un-vulcanized and vulcanized compounds were characterized and the vulcanization process was investigated. It was observed that the synthesized PU was able to crosslink with the rubber compounds during the vulcanization process. The lowered temperature of melting indicated a better processability of the composites containing thermoplastic PU which melted at processing temperature, thereby allowing improvement in blend viscosity mold flow and to some extent in its homogeneity, although the mechanical properties such as hardness, tensile strength, modulus, and elongation at break did not differ significantly from the properties of elastomer blends without PU. The thermal stability of compounds with PU did not significantly worsen.