The main goal of this study was impact modification of polyacetal [polyoxymethylene (POM)] with thermoplastic elastomer polyurethane (TPU). We modified the impact strength of POM 10-fold. The mechanical properties, thermal behavior, and morphology of POM/TPU blends consisting of 5 to 50% of TPU were studied. It was found that the best impact modification of the blends was at 15% concentration of TPU and the maximum elongation at break was at 30% concentration of TPU. The impact strength of POM/TPU blends can be improved by using diphenylmethane diisocyanate (NIDI) as compatibilizer.