Nano-aluminum particles are produced using electric wire explosion process in an inert atmosphere in this laboratory. Hot stage microscopy experiments have been carried out in an inert ambience to evaluate the accumulation behavior of nano-aluminum versus micro-aluminum particles in different mixture compositions during heating. The size of the accumulated aluminum is estimated from scanning electron micrographs. Clustering of aluminum during combustion is observed to be of a larger size with micron-sized particles than with nano-sized ones. The sandwiches are quenched by rapid depressurization. In order to understand the combination of plateau-burning rate effects and nano-aluminum combustion in bimodal ammonium perchlorate (AP) propellant formulations considered in the present study, the burning rates of the fine-AP/binder matrixes (without the coarse AP as in the propellants) are examined. Surface features and aluminum agglomerate size in the quenched samples of the sandwiches and matrixes are microscopically examined. Even though the nano-aluminized mixtures showed higher level of aluminum agglomeration, the resultant agglomerate sizes are in the range of 1-5 μm. Burning rates of non-aluminized, micro-aluminized, nano-aluminized and bimodal aluminized propellant formulations have been investigated, besides the variations of aluminum content and micro-Al/nano-Al contents. Nano-aluminized propellants yield 80-100% increase in the burning rate relative to non-aluminized and micro-aluminized propellants.