Aqueous acrylic-polyurethane hybrid emulsions were prepared by semibatch emulsion polymerization of a mixture of acrylic monomers (butyl acrylate, methyl methacrylate, and acrylic acid) in the presence of polyurethane dispersion. Equivalent physical blends were prepared by mixing acrylic emulsion and polyurethane dispersion. The weight ratio between acrylic and polyurethane components varied to obtain different emulsion properties, microphase structure, and mechanical film properties of hybrid emulsions and physical blends. Particle size and molecular mass measurements, scanning electron microscopy, glass transition temperature, and rheological measurements performed characterization of the latex system. The mechanical properties were investigated by measuring tensile strength and Koenig hardness of dried films. The experimental results indicate better acrylic-polyurethane compatibility in hybrid emulsions than in physical blends, resulting in improved chemical and mechanical properties.