Regenerated cellulose blend film with thermoplastic polyurethane (TPU) was successfully prepared by coagulating cellulose/TPU solution with water in the presence of a thermoplastic polyurethane elastomer (TPU). Compared with pristine regenerated cellulose film, the toughness and thermal stability of the blend film was significantly improved. For example, the elongation at break was increased from 11% of pristine cellulose film to 51% of blend film with 20 wt. % TPU. The 50% weight loss temperature of this blend film was increased by 33 °C compared to neat cellulose. The relaxation transition temperature of cellulose was decreased with the addition of TPU through dynamic mechanical thermal analysis. The oxygen permeability was decreased from 2.3 × 10−10 cm3 cm/cm2 s Pa of pristine cellulose film to 0.08 × 10−10 cm3 cm/cm2 s Pa of the blend film with 20 wt.%. TPU The X-ray diffraction spectra showed that the crystallinity of cellulose decreased with incorporation of TPU. The images of scanning electron microscope discovered that there was good compatibility between cellulose and TPU. TPU was nano-dispersed in cellulose matrix. The blend film still maintained quite good transparency.