A novel monomer, (trans)-7-[4-N,N-(di-β-hydroxyethyl) amino-benzene]-ethenyl-3,5-dinitro-thiophene (HBDT), was synthesized and characterized. The details of synthesizing the monomer andprepolymer, polyurethane with the monomer covalently incorporated are presented. The prepolymer andpolyurethane exhibited good solubility in common organic solvents. Molecular nonlinear optical properties ofthe monomer (HBDT) substituted thiophene based stilbenes is presented.