The following paper presents the key design and test activities associated with the development of POLON—a green microsatellite propulsion module using 98% Hydrogen Peroxide (HTP). POLON, which stands for “Polish Propulsion Module”, is the first step toward the development of a full, ready-to-be-commercialized satellite propulsion system at the Łukasiewicz—Institute of Aviation (Ł-IoA). The development of an entire microsatellite propulsion system within the frame of the POLON project effort is the natural milestone on the Ł-IoA green propulsion roadmap, which so far embodied research on fundamental HTP chemistry, work on elementary propulsion technologies, as well as the development of individual propulsion components. Within this article, POLON propulsion development logic is introduced first, and the major challenges associated with utilizing HTP for an orbital propulsion system are described. Consequently, the specific R&D activities aimed at mitigating the identified issues and risks are discussed. Those cover analytical as well as experimental work, including, but not limited to, HTP compatibility studies with candidate construction materials, waterhammer effect studies, HTP catalyst testing and evaluation, and propellant tank manufacturing studies. The initial results for those activities are presented and, finally, further development plans are discussed.