A photochromic composition for making optical materials comprising a polyurethane prepolymer formed by combining an isocyanate and a compound having an active hydrogen containing group, a polysilsequioxane and a photochromic compound. The photochromic composition may also include a monomer that has both an active hydrogen containing group and an unsaturated group. The polysilsesquioxane is incorporated as a copolymer and/or as a polysilsequioxane-chemically modified polyurethane.