The direct reduction of graphene oxide (GO) by hydroiodic acid is an established method to produce iodine functionalized reduced GO (I-rGO). However, the stability of the iodine species within I-rGO upon heating and dispersing into different solvents, as required for many applications, has not been examined. Herein we examined the stability of I-rGO and utilized it to promote self-assembled nanoenergetic composites. I-rGO intercalated with polyiodide was found to be unstable at elevated temperature and when dispersed in organic solvents. The I-rGO exhibited excellent dispersion in dimethylformamide but resulted in a loss of iodine content as exfoliation released weakly-bound intercalated iodine species. The dispersed I-rGO was utilized as a scaffold to self-assemble I-rGO/Al and I-rGO/Al/Bi2O3 nanoenergetic composites. The I-rGO both prevented the phase separation of Al and Bi2O3 particles and provided a source for reactive iodine to etch the alumina shell surrounding Al fuel nanoparticles. Differential scanning calorimetry showed that the use of the I-rGO assembly template reduced the temperature of initiation and peak reaction and produced 70% greater energy release than randomly mixed Al/Bi2O3 nanoenergetic powder. In fact, 95% of the exothermal energy released by the reaction occurred while Al was in the solid state, suggesting that the reaction between free iodine and alumina was significant enough to greatly reduce the diffusion barrier between solid Al fuel and surrounding oxidizer. Further, the underlying conductive I-rGO scaffold reduces electrostatic discharge sensitivity of the nanoenergetic composite by almost four orders of magnitude.