Insulating interlayer between nanoparticles and polymer matrix is crucial for suppressing the dielectric loss of polymer composites. In this study, titanium carbide (TiC) particles were surface modified by polydopamine (PDA), and the obtained PDA@TiC powders were used to reinforce thermoplastic polyurethane (TPU). The results indicate that the PDA@TiC were homogenously dispersed in the matrix compared with the pristine TiC, and that the PDA@TiC/TPU composites show improved dielectric and mechanical properties, i.e., much lower dissipation factors and obviously enhanced dielectric breakdown strength, as well as higher tensile strength and elongation at break as compared to the raw TiC/TPU. The nanoscale PDA interlayer contributes to the dielectric and mechanical enhancements because it not only serves as an insulating shell that prevents TiC particles from direct contacting and suppresses the loss and leakage current to very low levels, but also enhances the interfacial interactions thereby leading to improved mechanical strength and toughness. The prepared flexible PDA@TiC/TPU with high permittivity but low loss will find potential applications in electronic and electrical applications.