A method for plugging the areas of lost circulation occurred during the drilling of a well with the use of a drilling mud, and a lost circulation material to be used therefor. The lost circulation material comprising 1 to 90 parts by weight of a water-soluble solvent containing no active hydrogen atoms and hardly miscible with mineral oils and 10 to 99 parts by weight of a hydrophlic urethane prepolymer, and the method comprises injecting through the drilling pipe the lost circulation material sandwiched by a spacer of mineral oils, so as to allow the lost circulation material to penetrate into the lost circulation areas, to react with water which is present at the areas, and to plug the areas through its polymerization.