Preparation of novel antibacterial and cytocompatible polyurethane membranes as occlusive dressing, which can provide moist and sterile environment over mild exudative wounds is considered in this work. In this regard, an epoxy-terminated polyurethane (EPU) prepolymer based on castor oil and glycidyltriethylammonium chloride (GTEAC) as a reactive bactericidal agent were synthesized. Polyurethane membranes were prepared through cocuring of EPU and different content of GTEAC with 1,4-butane diamine. The physical and mechanical properties, as well as cytocompatibility and antibacterial performance of prepared membranes were studied. Depending on their chemical formulations, the equilibrium water absorption and water vapor transmission rate values of the membranes were in ranges of 3–85% and 53–154g m−2 day−1, respectively. Therefore, these transparent membranes can maintain for a long period the moist environment over the wounds with low exudates. Detailed cytotoxicity analysis of samples against mouse L929 fibroblast and MCA-3D keratinocyte cells showed good level of cytocompatibility of membranes after purification via extraction of residual unreacted GTEAC moieties. The antibacterial activity of the membranes against Escherichia coli and Staphylococcus aureus bacteria was also studied. The membrane containing 50% GTEAC exhibited an effective antibacterial activity, while showed acceptable cytocompatibility and therefore, can be applied as an antibacterial occlusive wound dressing. © 2013 Wiley Periodicals, Inc. J Biomed Mater Res Part A: 102A: 84–96, 2014.