Considerable toxic volatiles (CO and HCN) generation and high fire hazard has definitely compromised the application of thermoplastic polyurethane (TPU). Here, a novel functionalization strategy for bulky h-BN is adopted to obtain the multifunctional CPBN, aiming at the flame retardancy reinforcement of TPU. The multifunctional CPBN is successfully prepared via the wrapping of phytic acid doped polypyrrole shell, following with the adsorption of copper ions. The obviously decreased peak heat release rate, peak smoke production rate and total smoke production values, obtained from cone test, confirms the reduced fire hazard of TPU composite with CPBN. The dramatic suppressions on CO and HCN releases can also be observed from TG-IR test. Tensile test demonstrates that adding CPBN favors the reinforcement in mechanical property of TPU. Thus, the concurrent improvements in flame retardancy and mechanical performance are achieved by incorporating CPBN. This work opens up new avenues for the functionalization of h-BN, and thus facilitates its promising applications in polymer-matrix composite.