The development of perchlorate-free M662 40 mm illuminating pyrotechnic compositions is described. On the bases of cost, performance, and sensitivity, potassium periodate was determined to be most effective potassium perchlorate replacement in the compositions tested. The optimal periodate-based composition exceeded the performance of the perchlorate-containing control, exhibited low sensitivity values to impact, friction, and electrostatic discharge, and had high thermal onset temperatures.