Polyhedral oligomeric silsesquioxane copolymerized with butyl acrylate (BA), methyl methacrylate (MMA), and acrylic acid (AA) induced ca. twofold increase of fracture energy Γ and of Young's modulus E of cast films at only 1 wt% content. The copolymer of composition BA:MMA:AA:POSS 56:41:2:1 mol% was synthesized in situ by seeded semi-batch emulsion polymerization. Films cast from the corresponding emulsions were optically transparent and transmission electron microscopy (TEM) showed that POSS was predominantly dispersed at nearly single unit in the acrylic matrix. Shear rheology and time-temperature superposition (TTS) analysis demonstrated an entangled state with the absence of terminal regime, and POSS increased the segmental relaxation time τ_e and the rubbery modulus G_e, hence the free volume and packing length p decreased, relative to the neat copolymer. The efficient dispersion of POSS and its size smaller than the virtual tube diameter suggests that POSS is intercalating the molecular mesh. Therefore, the entanglement density increased and induced an increase of tensile mechanical modulus. The mesh intercalation by POSS means that it did not act as stress concentrator and consequently the critical fracture strain ε* and the fracture energy Γ also increased. These results evidenced the topological constraints imposed by the bulky POSS to hinder chains past each other thus inducing an increase of entanglement density and this manifested in simultaneous mechanical reinforcement and resistance to fracture.