The gamma irradiation induced aging of thermoplastic polymer Estane 5703 in air and water environments was studied by small-angle neutron scattering (SANS), Fourier transform infrared spectroscopy (FTIR), gel permeation chromatography (GPC), and X-ray diffraction (XRD). The degree of phase mixing was increased after irradiation, accompanied by the increase of domain distance and decrease of domain size. The hard domain distance increased from 9.8 to 11.2 nm and 14.4 nm for the samples irradiated in air and water with a dose up to 500 kGy, respectively. The GPC results indicated progressive formation of larger linked structures with very high molar mass with increasing absorbed doses. The samples irradiated in water exhibited a stronger aging effect than those irradiated in air. The FTIR results suggested that the cross-linking occurred among the secondary alkyl radicals, and the interactions in hard domains weakened because of the loss of inter-urethane H-bonds. The volume fraction of well-ordered soft segments in Estane increased upon irradiation.