Reactions of parabanic acid with propylene carbonate in the presence of 1,4-diazabicyclo[2.2.2]octane as catalyst were studied. During the reactions parabanic acid rings undergo opening and linear oligomeric products are formed. They are built from oxyisopropylene units formed in normal way of propylene carbonate ring opening. The oligomers discussed are characterized with higher thermal stability than parabanic acid and they can be used to produce thermally stable polyurethane foams. The chemical structures of the products obtained were characterized using IR, 1H NMR and MALDI TOF methods. On the basis of these analytical results the mechanisms of the processes leading to the products' formation were interpreted in detail.