The polyurethane composites with conducting carbon black (CB) were prepared by a solution-precipitation process, which was followed by melt compression molding. The polyurethane used has good shape memory effect. The morphology of CB fillers in polyurethane matrix and the resulting conductivity of the composites were investigated. It has been found that CB fillers exist in the forms of aggregates. The percolation threshold is achieved at the CB concentration of 20 wt %. The presence of CB fillers decreases the degree of crystallinity of polycaprolactone (PCL) soft segments of the polyurethane. However, the composites still have enough soft-segment crystals of polyurethane to fulfil the necessary condition far the shape memory properties. Dynamic mechanical data show that CB is an effective filler for the reinforcement of the polyurethane matrix, but does not deteriorate the stable physical cross-link structure of the polyurethane, which is necessary to store the elastic energy in the service process of the shape memory materials. Addition of CB reinforcement in the polyurethane has influenced the strain recovery properties, especially for those samples with CB concentrations above the percolation threshold. The response temperature of the shape memory effect T-r has not been affected too much. Strain fixation S-f, which expresses the ability of the specimens to fix their strain, has been improved in the presence of the CB fillers. The final recovery rates R-f and strain recovery speeds V-r of the shape memory measurements, however, have decreased evidently. It is expectedly ascribed to the increased bulk viscosity as well as the impeding effect of the inter-connective structure of CB fillers in the polymer matrix. (C) 2000 John Wiley & Sons, Inc.