Thermoplastic polyurethane (TPU) elastomer is a commonly used material for foam preparation. However, its application is hindered by significant shrinkage behavior. To reduce the foam shrinkage, polylactic acid (PLA) and calcium stearate‐modified montmorillonite (MMT‐St) are incorporated into the polyurethane matrix. The TPU/PLA/MMT‐St composite foams are formed using an intermittent supercritical carbon‐dioxide‐foaming process. The addition of PLA inhibits the relaxation of TPU chain segments, while the introduction of calcium stearate (GaSt 2 ) improves the dispersion of MMT within the matrix, increases the nucleation sites of cell growth, and improves cell structure. The cell diameter decreases from 10 to 4 μm, while the cell density increased from 4.1 × 10 12 to 15.8 × 10 12 cell cm −3 . In addition, the cell distribution range narrows from 4–19 to 2–6 μm. Incorporating MMT‐St increases the crystallinity and thermal stability of TPU/PLA, mitigates chain relaxation at room temperature, and enhances foam dimensional stability. As a result, this leads to a decrease in shrinkage rate from 27.5% to 5%. As both matrices of the material are thermoplastic, this composite foam possesses recyclability with enhanced material utilization.