PROBLEM TO BE SOLVED: To provide a propellant suppressing the occurrence of bubbles under high temperature load for a long period of time and more enhancing an elongation ratio at a lower temperature region, and to provide a method of manufacturing the propellant. SOLUTION: In the method of manufacturing the propellant containing 60-90 mass% ammonium perchlorate and 10-40 mass% binder raw material component consisting essentially of a hydroxide terminated polyether having methyl azide group, ammonium perchlorate particles having ≤0.05% water contained in the ammonium perchlorate is used. The mechanical characteristics at a low temperature is improved and the generation of the bubbles in the high temperature load on the propellant is suppressed. COPYRIGHT: (C)2010,JPO&INPIT