Vegetable oils are excellent but very heterogeneous renewable raw materials for polyols and polyurethanes. This review discusses the specific nature of vegetable oils and the effect of their structures on the structure of polyols and polyurethanes. One section is dedicated to polyols for rigid and flexible foams and methods of their preparation such as direct oxidation of oils, epoxidation followed by ring opening, hydroformylation, ozonolysis, and transesterification. The next section deals with preparation and structure‐property relationships in polyurethanes from different groups of polyols, different isocyanates, and different degrees of crosslinking. The final section covers the environmental aspects of bio‐based polyurethanes, i.e., thermal stability, hydrolytic stability, and some aspects of biodegradability.