In this work, nitration of low molecular weight polybutadiene (PB) by a convenient and inexpensive procedure has been investigated. The NPB product (Nitropolybutadiene) was characterized by FT-IR, 1H-NMR, GPC, TGA, DSC etc. Then NPB energetic polymer plasticizer and nitro-hydroxyl terminated polybutadiene (NHTPB) binder have been replaced with dioctyl adiphate (DOA) inert plasticizer and HTPB binder in PBXN-109, respectively and the new formulation was prepared with energetic binder system as named PBXN-109EB. Density, hardness, vacuum stability, mechanical property, viscosity, glass transition temperatures (Tg), sensitiveness and performance properties of PBXN-109EB were compared to standard PBXN-109. The results show that new PBX not only has all requirements of PBXN-109, but also has enhanced performance properties in velocity, blast pressure, impulse and visual parameters of explosion. So NHTPB/NPB binder system (binder/plasticizer) can be used as a new energetic binder system in high performance polymer bonded explosives.