We report the first study of the gas generation and thermal wave behavior during the performance of the novel nanoenergetic system based on aluminum and bismuth hydroxide Al-Bi(OH) 3 . The thermodynamic calculations demonstrated that this system is comparable to one of the most powerful known nano-thermite systems, Al-Bi 2 O 3 , in terms of energy capacity per initial charge mass, and may generate more than twice gaseous products 0.0087 mol/g. Differential scanning calorimeter analysis shows that homogenization of as-received powder by using mechanical activation is an essential step to reduce the decomposition energy of bismuth hydroxide by 30 %, which results in nano thermite with higher pressure discharge abilities. The mechanical activation with energy of 450-750 kJ/g is enough to transform micro meter sized particles to sub-micro and nano-sized domain. The resulting nano thermite generated significant value of pressure discharge up to 5.6 kPa m 3 /g.