Segmented block copolymers were synthesized from hydroxyl terminated liquid natural rubber (HTNR) and polyurethane oligomers based on 1,2-propylene glycol and toluene diisocyanate (TDI) by one-shot and two-shot processes in solution. They were completely phase segregated. Structural features were characterized by infrared and nuclear magnetic resonance spectroscopies. The two-phase morphology was deducted from thermal analysis and dynamic mechanical analysis (DMA). The soft segment glass transition temperature was about -64°C and the hard segment glass transition was between 70°C and 100°C depending on the polyurethane content. The two-phase morphology was corroborated by a two-stage thermal decomposition of the products. The morphology consisted of a heterogeneous dispersion of beads in a continuous matrix. The large size and the nature of the beads suggest that they are independent of the block copolymer structure and are formed by the agglomeration of the polyurethane homopolymers, which remain unbonded to the rubber chains during chain extension. At lower hard segment contents the materials behaved like quasi-elastomers, and at higher hard segment contents, they were like tough plastics. At intermediate compositions they behaved as rigid elastomers. Variations in hardness and tear strength were consistent with this behavior.