AbstractA new class of materials termed magnetorheological elastomers (MREs) are developed that respond to externally imposed magnetic fields. Magnetic particles are embedded in viscoelastic solids or liquid elastomeric precursors. This kind of composite demonstrates a unique combination of good magnetic controllability and elastic properties. Polybutadiene (hydrocarbon based) based polyurethane MREs are developed because of their thermooxidative, hydrolytic, and chemical resistance. The structure–property relationships of polyurethane–MREs are investigated using several characterization techniques. Morphological features such as interdomains of soft and hard segments are identified with tapping‐mode atomic force microscopy. The thermal and mechanical behavior is evaluated with dynamic mechanical analysis, differential scanning calorimetry, and stress–strain tests. © 2007 Wiley Periodicals, Inc. J Appl Polym Sci, 2007