In this work, fracture toughness and properties of blends of plasticized poly(vinyl chloride) (PVC) and thermoplastic polyurethane (TPU) were investigated. Two kinds of TPU with different hardness, i.e. TPU90 (Shore A hardness 90) and TPU70 (Shore A hardness 70) were compared. PVC/TPU90 and PVC/TPU70 blends with variable weight ratio (100/0, 90/10, 80/20, 70/30, 60/40, 50/50, 0/100) were prepared by melt blending. Fracture toughness was investigated using the J-integral by locus method. Blending of TPU with plasticized PVC improved tensile strength, impact strength, abrasion resistance, and thermal stability, with small decline of tensile modulus and hardness. The PVC/TPU blends showed flame retardancy over the composition ranges, regardless of the hardness of TPU, except the PVC/TPU70 of 50/50 composition, in terms of the limiting oxygen index. PVC/TPU70 blends showed higher Jc values and thus higher fracture toughness over the entire composition than PVC/TPU90 blends. For the PVC/TPU70 blends, the SEM micrographs showed clear dimple rupture fracture topology, while the PVC/TPU90 blends did not.