In this work, the compatibility of blends of plasticized poly(vinyl chloride) (p-PVC) and thermoplastic polyurethane (TPU) was investigated using a dynamic mechanical analyzer and scanning electron microscopy. Two kinds of TPU with different ratios of hard to soft segments, i.e., TPU90 and TPU70 were compared. p-PVC/TPU90 and p-PVC/TPU70 blends with variable weight ratios (100/0, 90/10, 80/20, 70/30, 60/40, 50/50, 0/100) were prepared by melt blending. PVC was plasticized with 40 phr of dioctyl. phthalate. It was found that TPU with a lower hard segment (i.e., TPU70) is more compatible with plasticized PVC than TPU with a higher hard segment (i.e., TPU90) in over the composition ranges examined. It was concluded that the compatibility of plasticized PVC and TPU are dependent on the ratio of hard to soft segments in TPU.