In this study, a novel hybrid polyurethane/polycaprolactone (PU/PCL) tubular scaffold was fabricated using the electrospinning process for blood vessel prosthesis applications. The detailed microstructure and material properties such as porosity, tensile and bust strength, contact angle, and biocompatibility were investigated and compared with those of monolithic PU and PCL scaffolds. The mechanical properties of the hybrid PU/PCL scaffold (tensile strength: 18 MPa, pressure strength: 590 mmHg) were found to be within the range needed for artificial blood vessel applications. The pore sizes of the PU/PCL scaffold ranged from 5-150 um in diameter, are sufficient enough to allow nutrient diffusion across the membrane. The reduced hydrophobic property of the PU/PCL scaffold was the result of the addition of relatively less hydrophobic PU compared with monolithic PCL scaffold. The biocompatibility of the PU/PCL scaffold was evaluated through cytotoxicity testing, and morphological observation by scanning electron microscopy and confocal microscopy using cow pulmonary artery endothelial cells and fibroblast like cells (L929).