Abstract: An encapsulated lens retroreflective sheeting that has a bonding layer that consists essentially of a thermoplastic polyurethane resin that has a softening point of 70.degree. C. to 200.degree. C. The bonding layer is sealed to a light transmissible surface protective layer by a multitude of bonds that form spaces between the protective layer and the bonding layer. Retroreflective elements are partially embedded in the bonding layer and interface with air in the spaces. An encapsulated lens retroreflective sheeting of this construction can be adhered to a highly plasticized plastic surface and maintain high adhesion force for an extended duration while at the same time maintaining good retroreflective performance.