N,N'-Bis(2-hydroxyethyl)urea (BHEU) was hydroxyalkylated with ethylene carbonate (EC). The oligomeric products were obtained and analyzed by H-1-NMR, IR, MALDI ToF, and GC methods. The polyols obtained from BHEU and EC in large excess have good thermal stability and possess suitable physical properties as substrates for foamed polyurethanes. The rigid polyurethane foams obtained from the hydroxyethoxy derivatives of urea reveal enhanced thermal stability. (C) 2009 Wiley Periodicals, Inc. J Appl Polym Sci 114: 1141-1149, 2009