The present invention is directed to a treadmill belt with foamed cushion layer and method of making same. In one embodiment, the treadmill belt includes a fabric base layer and a foamed cushion layer foamed on and integral with the fabric base layer. The foamed cushion layer includes a thermoplastic composition and has a Shore A hardness of about 20 to about 80. In one example, the first foamed cushion layer is from about 0.05 inches to about 0.35 inches thick. The thermoplastic composition, prior to being foamed, includes about 1 part to about 5 parts of a foaming agent, e.g., a chemical foaming agent, based on 100 parts thermoplastic material, e.g., polyvinyl chloride. An outer wear layer is securely adhered on the foamed cushion layer to sandwich the foamed cushion layer between the fabric base layer and outer wear layer thereby defining the treadmill belt.