In this investigation, we successfully synthesized a hybrid material, N‐rGO@Fe2O3, via a one‐step hydrothermal process, comprising nitrogen‐doped reduced graphene oxide and α‐Fe2O3. Thorough characterization using diverse analytical methods validated its structure. Employing this hybrid composite as a catalyst, we studied its efficacy in the catalytic thermal decomposition of ammonium nitrate (AN). The N‐rGO@Fe2O3/AN composite was prepared using a recurrent spray coating method with 3 % mass of the hybrid material. Thermo‐gravimetric (TG) and differential scanning calorimetric (DSC) analyses were employed to investigate the catalytic effect. Computational assessment of Arrhenius parameters was conducted through isoconversional kinetic approaches. Results from the kinetic analysis allowed the determination of the critical ignition temperature. Furthermore, calorific values for pure AN and N‐rGO@Fe2O3/AN were measured using an oxygen calorimetric bombe, revealing a 41 % reduction in activation energy barrier and a lowering of the critical ignition temperature from 292 °C to 283 °C upon incorporation of the hybrid material. Notably, the surface modification of AN with N‐rGO@Fe2O3 resulted in an increase of 1440 J/g in the observed calorific values. These findings highlight the potential of N‐rGO@Fe2O3 as an effective catalyst, offering promising implications for applications in enhancing ammonium nitrate thermal decomposition.