By comparison of neopentane pair potentials of mean force (PMFs) in room temperature water and 6.9 molar aqueous urea, it was recently shown that urea molecules affect the PMF minima in an unexpected way (Lee, M.-E.; van der Vegt, N. F. A. J. Am. Chem. Soc. 2006, 128, 4948). While the first PMF minimum in urea solution has an identical shape and depth to those of the corresponding minimum in water, the second minimum in urea solution is broader, deeper, and shifted out to a slightly larger distance. Here, we present a study of the enthalpic and entropic contributions to these PMFs. Its significance for understanding the driving forces responsible for thermodynamically favorable neopentane contact and solvent-separated distances in urea solution is discussed. We propose that the solute-solvent entropy and solute-solvent enthalpy changes should be analyzed for obtaining an unambiguous molecular-scale picture. In urea solution, enthalpy-entropy compensation effects associated with structural solvent reorganization processes are large, causing changes of the system's enthalpy and entropy with hydrophobic pair separation to be very different from the solute-solvent enthalpy and entropy changes. The entropies are discussed in terms of the molecular-scale solvent reorganization processes.