Two series of poly(ester urethane)s were prepared, containing polycaprolactone (PCL) as the soft segment with molecular weights of 530 and 2000. In each series, the soft‐segment/hard‐segment ratio was varied, and the morphological changes were monitored with differential scanning calorimetry, dynamic mechanical thermal analysis, wide‐angle X‐ray scattering, and scanning electron microscopy techniques. The polyurethanes with longer PCL segments retained their crystallinity, whereas those with shorter PCL segments did not. A morphological model is proposed, in which a continuous PCL‐rich matrix contains both PCL crystallites and domains of urethane hard segments. © 2002 Wiley Periodicals, Inc. J Polym Sci Part A: Polym Chem 40: 4117–4130, 2002