Polyurethane (PU) coatings are used in diverse applications such as textile coating. Up to today, landfilling is still the most occurring way of processing PU waste. Biodegradation is an alternative route for processing PU waste and decreases the amount of microplastics in the case of landfilling. In this study, a biodegradable PU textile coating was developed. The PU was characterized via Fourier-transformed infrared (FT-IR) thermogravimetric analysis (TGA) and differential scanning calorimetry (DSC). The PU was thermoplastic and had a melting point of approximately 33 °C. The performance of the coating was studied by assessing the water barrier and mechanical properties. The PU coating completely disintegrated, and the biodegradation of PU was assessed in soil and was almost 60%. Furthermore, the plant toxicity was examined by evaluating seedling emergence and growth.