In recent years, significant developments have been made in solid-fuel combustion. Paraffin-based fuels could be a potential solid fuel for hybrid and ramjet applications due to their high regression rate, low cost, and minimal environmental impact. This study examines the thermal and combustion performance of paraffin-based fuels loaded with CeO2 combustion catalysts and Al additive. A typical melt-cast technique was used to prepare three different fuel formulations, which are paraffin/10 wt.% of Al (S2), paraffin/10 wt.% of CeO2 (S3), and CeO2-Al (10:10 wt.%) binary composite (S4). The pure paraffin (S1) fuel was manufactured as a reference formulation. The CeO2-Al binary composite powder was prepared by ball-milling of CeO2 and Al powders. The CeO2 and Al nanoparticles were characterized by X-ray diffraction (XRD), particle size distribution (PSD), and scanning electron microscope (SEM). The PSD study revealed that the majority of CeO2, Al, and CeO2-Al binary composite particles are 29 nm, 34 nm, and 26 nm in size, respectively. The thermogravimetric analysis (TGA) was used to investigate the effect of CeO2 and Al on the thermal decomposition of paraffin. The results indicate that the paraffin decomposes faster and at a higher rate when CeO2 and CeO2-Al binary composite additives were added. The activation energy of paraffin-based fuel (S4) was reduced from 254 kJ/mol to 214 kJ/mol when a CeO2-Al combustion catalyst was added. The lab-scale ballistic tests showed that the average regression rate of paraffin-Al (S2) and paraffin-CeO2(S3) samples increased in the range of 1.1-1.4 mm/s and 1.12-1.38 mm/s, respectively, whereas, with the CeO2-Al binary composite (S4) sample, a reasonable improvement of 1.15 mm/s to 1.49 mm/s was reported.