In this study, PEG(SE) containing sulfonic acid group was produced by transesterification of dimethyl 5‐sulfoisophthalate sodium salt (SIP) with PEG. The reactive urethane acrylate oligomers were synthesized by using SE as soft segment, isophorone diisocyanate (IPDI) as hard segment, and hydroxyethyl methacrylate (HEMA) as blocking agent. Their solution properties and thermal properties were investigated. Dipping process was carried out on polyethylene terephthalate (PET) fabric, polyamide (nylon) fabric, and cotton fabric for hydrophilic finishing and the effects of processing condition on the fixation behavior and hydrophilic property of treated fabric have been discussed. The conclusions are as follows: the particle size of oligomer solutions are about 45–90 μm, surface tension of solutions are below 43 dyn/cm, and they have smaller contact angle than water. The particle size, particle variance, and streaming current reading decreased, but the surface tension and contact angle enhanced upon increasing PEG molecular weight. The melting point of oligomer is 38°C–52°C and the glass transition point is −18°C to −25°C. In comparison with the fabric finishing, the add‐on of PET fabric is the highest, followed by nylon, then cotton. The durability of treated cotton fabric is the highest, followed by PET, then nylon. The hydrophilicity is most stable for nylon fabric with PEG molecular weight of 2,000, and cotton and PET fabric with molecular weight of 1,000. POLYM. COMPOS., 29:45–57, 2008. © 2007 Society of Plastics Engineers