Polymer nanocomposites based on thermoplastic polyurethane (PU) elastomer and metal nanoparticle (Ag and Cu) decorated multiwall carbon nanotubes (M-CNTs) were prepared through melt mixing process and investigated for its mechanical, dynamic mechanical and electro active shape memory properties. Structural characterization and morphological characterization of the PU nanocomposites were done using X-ray diffraction (XRD) and scanning electron microscopy (SEM). Morphological characterization revealed better dispersion of M-CNTs in the polyurethane, which is attributed to the improved interaction between the M-CNTs and polyurethane. Loading of the metal nanoparticle coated carbon nanotubes resulted in the significant improvement on the mechanical properties such as tensile strength of the PU composites in comparison to the pristine carbon nanotubes (P-CNTs). Dynamic mechanical analysis showed that the glass transition temperature (Tg) of the polyurethane increases slightly with increasing loading of both pristine and metal nanoparticle functionalized carbon nanotubes. The metal nanoparticles decorated carbon nanotubes also showed significant improvement in the thermal and electrical conductivity of the PU/M-CNTs nanocomposites. Shape memory studies of the PU/M-CNTs nanocomposites exhibit remarkable recoverability of its shape at lower applied dc voltages. (C) 2011 Elsevier B.V. All rights reserved.