In this article, Bi2O3/Al high-density energetic composites with a core-shell structure were prepared by a two-step ball milling method using a common planetary ball milling instrument, and their morphology, structure, and properties were characterized in detail. Through a reasonable ratio design and optimization of the ball milling conditions, the density of the Bi2O3/Al core-shell energetic composite is increased by about 11.3% compared to that of the physical mixed sample under the same conditions. The DSC (Differential Scanning Calorimetry) test also showed that the exothermic quantity of the thermite reaction of the energetic composite reached 2112.21 J/g, which is very close to the theoretical exothermic quantity. The effect of Bi2O3/Al core-shell energetic composite on the energy performance of insensitive HTPE propellant was further studied. The theoretical calculation results showed that replacing the partial Al with Bi2O3/Al core-shell energetic composite can make the density of propellant reach 2.056 g/cm3, and the density specific impulse reach 502.3 s·g/cm3, which is significantly higher than the density and density specific impulse of the conventional composite solid propellant. The thermal test showed that the explosive heat of the HTPE (Hydroxyl terminated polyether) propellant also increased with the increase of the content of Bi2O3/Al core-shell energetic composite.