Waterborne polyurethanes (WPU) modified with polyether functional polydimethylsiloxane (PDMS) were synthesized by pre-polymerization method using isophorone diisocyanate (IPDI) and 1,4-butanediol (BDO) as hard segments and polybutylene adipate glycol (PBA) and polyether functional PDMS as soft segments. The effect of polyether functional PDMS on phase separation, thermal properties, surface properties including surface composition, morphology and wettability were investigated by FTIR, contact angle measurements, ARXPS, SEM-EDS, AFM, TG and DSC. The results showed that the compatibility between urethane hard segment and PDMS modified with polyether was good, and there was no distinct phase separation in both bulk and surface of WPU films. The degradation temperature and low temperature flexibility increased with increasing amounts of polyether functional PDMS. The enrichment of polyether functional PDMS with low surface energy on the surface imparted excellent hydrophobicity to WPU films. (C) 2016 Elsevier B.V. All rights reserved.