ABSTRACTNational Fire Protection Association encounters one structural fire every 66 s. Rigid polyurethane foam is one of the principal components used in constructional and household applications. In this work, a reactive flame retardant (FR) was synthesized using a facile one‐step thiol–ene reaction by reacting mercaptenized castor oil (MCO) and diethyl allyl phosphonate (DEAP). The obtained MCO–DEAP polyol was used for the preparation of polyurethanes having different weight percentages of phosphorus (P). Addition of FR polyol showed no adverse effect on the cellular structure of the foams and maintained the compressive strength. All the foams showed closed cell content greater than 95%. Horizontal burning test (HBT) was performed before and after the migration test to understand the stability of the FR within the foams. Foams showed no relative weight loss before and after the migration test and maintained equivalent results for HBT. For 1.5 wt % P foams, low extinguishing time of 3 s and weight loss of 4% was observed. The cone calorimeter test showed a reduction in the peak heat release rate from 313 to 158 kW m−3, the total heat release from 18 to 8 MJ m−2, and O2 consumption from 12 to 6 g. Our results suggest that MCO–DEAP polyol could act as an essential FR for rigid PU foam ensuring fire safety. © 2018 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2019, 136, 47276.