We employ first-principles molecular dynamics simulations to provide equation-of-state data, pair distribution functions (PDFs), diffusion coefficients, and band gaps of a mixture of hydrogen and methane under planetary interior conditions as relevant for Uranus, Neptune, and similar icy exoplanets. We test the linear mixing approximation, which is fulfilled within a few percent for the chosen P–T conditions. Evaluation of the PDFs reveals that methane molecules dissociate into carbon clusters and free hydrogen atoms at temperatures greater than 3000 K. At high temperatures, the clusters are found to be short-lived. Furthermore, we calculate the electrical conductivity from which we derive the non-metal-to-metal transition region of the mixture. We also calculate the electrical conductivity along the P–T profile of Uranus [N. Nettelmann et al., Planet. Space Sci., 2013, 77, 143–151] and observe the transition of the mixture from a molecular to an atomic fluid as a function of the radius of the planet. The density and temperature ranges chosen in our study can be achieved using dynamic shock compression experiments and seek to aid such future experiments. Our work also provides a relevant data set for a better understanding of the interior, evolution, luminosity, and magnetic field of the ice giants in our solar system and beyond.