A polysiloxane compound modified with two hydroxyl groups at the one end thereof and particularly suitable for improving the surface characteristics of resins prepared by polycondensation of a polyol with another polyfunctional compound, and a silicone-modified polyurethane having superior characteristics such as low frictional properties, water repellency, oil repellency, thrombosis resistance, etc. and also a process for producing the polyurethane are provided, which polysiloxane compound expressed by the formula ##STR1## wherein R represents H, Me (methyl) or Et (ethyl) and n represents an integer of 0 to 4,000, and which silicone-modified polyurethane is obtained from a compound having at least two isocyanate groups and a compound having at least two hydroxyl groups, and by using as a part of the compound having at least two hydroxyl groups, the polysiloxane compound of the above formula (I) in the urethane bond-forming reaction.
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