A new molecular design of dyes comprising diazo groups was proposed to address the severe staining problem of polyurethane (PU) fibers dyed with disperse dyes. Nine reactive disperse dyes containing α-phenyl diazo ester as the reactive group were designed and synthesized, and their structures were characterized using nuclear magnetic resonance spectroscopy, high-resolution mass spectrometry, and infrared spectroscopy. The absorption and thermal properties of the nine dyes were also investigated. PU fibers were dyed with these dyes, and the corresponding dyeing and fixing processes were optimized. PU fibers treated using a simple heating process exhibited excellent fixation performance, which was confirmed through studying their fixation, migration, and fastness properties. PU fibers dyed with dyes containing one diazo group exhibited fixation values of 50.6%–75.8%, which were considerably increased to 83.9%–92.9% when dyes with two diazo groups were used. These high fixation values hindered the migration of the dye molecules, effectively reducing their staining on other fibers. Therefore, the dyed PU fibers exhibited excellent color fastnesses to soaping, rubbing, and sublimation. The reaction mechanism between the dye and fiber was proposed based on a model reaction experiment and theoretical analysis. The results indicated that the N–H bond of the PU macromolecule was the main reaction site, on which carbene intermediates reacted with the fiber through an insertion reaction.