Use of nano sized aluminium powder in place of micron sized powder leads to increase in specific impulse of solid composite propellants. However, poor mechanical properties of nano-aluminized propellants prevent their use in actual rocket motors. An attempt has been made here, to improve the mechanical properties by using different HTPB resins having different functionality type distribution. Adjustment of isocyanate to hydroxyl ratio, and ratio of the chain extender, Butane-diol, to the cross-linker, Tri-Methylol-Propane, had also been tried to investigate their effect on mechanical properties. Nano-aluminium content in the propellant samples could be raised to the conventional level of 18 % by use of Iso Decyl Pelargonate as plasticizer in place of Dioctyl Adipate. This made the samples at par with the conventional micro-aluminium propellants, and the experimental results comparable. The microstructural changes of HTPB significantly improved the tensile strength of the nano-aluminium propellants to 0.65 MPa and break elongation to 17 % respectively. Recorded heat of combustion values are at 5990 J/g. These figures meet industrial tolerance and make the propellant acceptable for use while increasing its specific impulse beyond today's conventional levels. The technology established has potentials to increase nano-aluminium content further, and augment ballistic properties of solid motors, upholding the required industrial restrictions of rheological and physico-mechanical parameters. © 2020 Wiley-VCH GmbH