The dynamic mechanical behaviors of Hydroxyl-terminated polybutadiene (HTPB) propellant was studied by a split Hopkinson pressure bar apparatus (SHPB) at strain rates ranging from 103 to 104 s−1. The obtained stress–strain curves indicated that the mechanical features, such as ultimate stress and strain energy, were strongly dependent on the strain rate. The real time deformation and fracture evolution of HTPB propellant were captured by a high-speed digital camera accompanied with an SHPB setup. Furthermore, microscopic observation for the post-test specimen was conducted to explore the different damage mechanisms under various conditions of impact loading. The dominated damage characteristics of HTPB propellant were changed from debonding and matrix tearing to multiple cracking modes of ammonium perchlorate (AP) particles, along with the increase of the strain rate. For the first time, the influence of AP particle density on the dynamic response of HTPB propellant was studied by analyzing the strain-rate sensitivity (SRS) index of HTPB propellant with two different filler content (80 wt.% and 85 wt.%), which deduced from a power function of ultimate stress and strain energy density. The result of this study is of significance for evaluating the structural integrity and security of HTPB propellant.