The use of krypton in the field of electric propulsion has become a key research topic owing to its high specific impulse and high reserves. However, because krypton has features such as a small ionization cross section and high ionization energy, its ionization performance is relatively low, thereby increasing the actual specific impulse loss of the krypton Hall thruster in comparison with its theoretical value. Therefore, to use of krypton as the propellant of the Hall thruster instead of xenon, it is necessary to study the optimization of its ionization process. In this study, a gas distributor with a rotating propellant supply mode is designed, considering factors such as the velocity and density of the velocity of neutral atoms, which affects the ionization process. The distribution of neutral atom parameters in the discharge channel is changed by the rotation; and its influences on the propellant ionization and other performance parameters of the Hall thruster are experimentally analyzed with respect to the magneto-ampere, volt-ampere, and flow rate-ampere characteristics. The results demonstrate that the rotating propellant supply reduces the axial velocity of neutral atoms, increases the density and circumferential motion distance, and thus improves the ionization efficiency of the krypton Hall thruster. Furthermore, the performance parameters, such as thrust and efficiency, are also improved, and the plume divergence angle is reduced. When the discharge voltage is 450 V and the anode flow rate is 60 sccm, the rotating propellant supply can increase the anode efficiency of the axial propellant supply mode from 46.2% to 53.2%. However, the plume divergence half-angle reduces from 39.2° to 35.5°. In addition, an increase in the anode flow rate and discharge voltage continuously increases the performance promotion in the rotating propellant supply mode.