In recent years, the extensive application of unsaturated polyester resins (UPRs) and their composites has resulted in an increasing environmental problem and it is necessary to find a simple and efficient recycling method especially for the high-value reinforced fibers. Here a self-polymerizable dimethacrylate monomer containing a cleavable unit, β-carbonyl hindered urethano, was designed for a degradable UPR which has a good flexible strength of 79 MPa and Tg of 119.7 °C. Moreover, through the hydrolysis of ester that was previously activated by selective cleavage of hindered C–O bond in urethano, the resin could be directly degraded in an aqueous solution (4/1 M ratio of hydrazine and NaOH and 0.04 mol/mL of total concentration) at 80 °C in 4 h, and the degraded products could be simply separated by solubility. Furthermore, its carbon fiber composite was degraded in only 2.5 h and the recycled carbon fiber fabrics well maintained their original woven structure, surface chemical composition, graphitized structure and mechanical strength. This work provides a new method for efficient degradation and recycling of fiber reinforced thermosetting resin composites.