A study of DNAM as a candidate ingredient for propellant formulations is reported. A formulation including DNAM and based on Phase Stabilized Ammonium Nitrate (PSAN) and Hydroxy-Terminated-PolyButadiene (HTPB) was selected for the study. This includes thermoanalytical measurements on the mixtures of solid components and propellant samples. Performance is assessed by burning rate measurements. A new small-scale shock sensitivity test developed for studying the propellant under consideration is described. A good potential for DNAM was found for this formulation as revealed by the performance and low vulnerability of the PSAN/DNAM/HTPB composition.