Polymer-coated urea (PCU) has great potential for increasing crop production and enhancing nitrogen (N) fertilizer use efficiency, benefiting the ecosystem. However, current PCUs are used only in a limited market, and the main obstacle to the wider use of PCUs is high cost compared to that of conventional N fertilizers. In this study, the low cost PCU and large tablet polymer-coated urea (LTPCU) were prepared by using recycling polystyrene foam and various sealants as the coating materials. The structural and chemical characteristics of the coating shells of the coated fertilizers were examined. The N release characteristics of coated fertilizers were determined in 25 °C water under laboratory conditions. The relationship between the N release longevity and the amount of coating material and the percentage of different sealants were evaluated. The results indicated that recycling polystyrene foam was the ideal coating material of the controlled release fertilizer. The polyurethane that was synthesized by the reaction of castor oil and isocyanate was better than the wax as the additive to delay the N release rate of coated urea. The coating material used for LTPCU was 70-80% less than those used for commercial PCUs under the same N release longevity. The cost of the recycling polystyrene foam used for coating one ton of pure N of the LTPCU was about one-seventh to one-eighth of the cost of the traditional polymer used for the commercial PCU. The experimental data showed that the LTPCU with good controlled-release capacities, being economical and eco-friendly, could be promising for wide use in agriculture and horticulture.