Microencapsulated ammonium polyphosphate (MAPP) with polyurethane resin has been prepared by in situ polymerization. The combination of MAPP and boron phosphate (BP) on the flammability properties of thermoplastic polyurethane (TPU) was studied by vertical burning (UL‐94) tests, limiting oxygen index tests, cone calorimetry (CONE), and microscale combustion calorimeter (MCC) whereas thermal stability was investigated by thermogravimetric analysis and real‐time Fourier transform infrared. Results showed that a suitable substitution of MAPP by BP could improve flame retardancy of the TPU/MAPP composites and TPU composites with MAPP/BP (15.5/2 wt%) achieving UL‐94 V‐0 rating. The CONE and MCC data showed synergistic effects between BP and MAPP in the composites. Copyright © 2011 John Wiley & Sons, Ltd.